- $1.4 billion of capital returned to shareholders since initial
public offering in September 2022
- Repurchased $102 million of shares from public market through
October 31, 2023
- Net income of $2.1 billion, or $3.28 per share
- Adjusted after-tax operating income1 of $675 million and
operating EPS1 of $1.05 per share
- Base spread income2 grew 24% and base yield2 expanded 62 basis
points over the prior year quarter
- Life Fleet RBC Ratio2 remains in excess of 400% target
- Announced sale of UK life business to Aviva plc for £460
million
- Closed sale of Laya Healthcare to AXA on October 31, 2023, with
approximately $730 million special dividend payable in November
2023
Corebridge Financial, Inc. ("Corebridge" or the "Company")
(NYSE: CRBG) today reported financial results for the third quarter
ended September 30, 2023.
Kevin Hogan, President and Chief Executive Officer of
Corebridge, said, “I am pleased to report outstanding progress over
what has been an extraordinary twelve months since our initial
public offering. Corebridge has executed with focus and precision,
increasing premiums and deposits by 28% over the first nine months
of 2023 compared to the first nine months of 2022, and growing base
spread income 34% over this same time while strengthening our
balance sheet. Since our IPO, we have returned $1.4 billion of
capital to shareholders and achieved or contracted on 81% of
Corebridge Forward target run-rate savings.
“This quarter, we extended the positive momentum we have been
building from the outset. Corebridge once again generated strong
results, achieving a 28% increase in operating EPS and adding 230
basis points to adjusted return on average equity. Further, we are
unlocking an additional $1.2 billion in shareholder value through
the sale of our international operations as we streamline our
portfolio to focus on our businesses in the United States.
“We are confident in our ability to achieve our financial
targets while maintaining a disciplined approach that pursues
sustainable growth, protects our strong balance sheet, and drives
shareholder value. I want to thank all of our employees and
partners who made our first year as a public company such a
successful one.“
CONSOLIDATED RESULTS
Three Months Ended September
30,
($ in millions, except per share data)
2023
2022
Net income (loss) attributable to common
shareholders
$
2,101
$
2,406
Income (loss) per common share
attributable to common shareholders
$
3.28
$
3.72
Adjusted after-tax operating income
$
675
$
527
Operating EPS
$
1.05
$
0.82
Book value per common share
$
13.21
$
13.33
Adjusted book value per common share1
$
38.23
$
36.59
Pre-tax income (loss)
$
2,461
$
3,172
Adjusted pre-tax operating income1
$
813
$
630
Premiums and deposits1
$
9,133
$
8,785
Net investment income
$
2,657
$
2,160
Net investment income (APTOI basis)1
$
2,456
$
2,031
Base portfolio income2 - insurance
operating businesses
$
2,428
$
1,996
Variable investment income2 - insurance
operating businesses
$
37
$
(1
)
Corporate and other3
$
(9
)
$
36
Return on average equity
88.8
%
92.3
%
Adjusted return on average equity1
11.4
%
9.1
%
Net income was $2.1 billion, a 13% decrease over the prior year
quarter. The change largely was driven by lower realized gains. Of
note, the Company completed its annual actuarial assumption review
during the quarter which increased pre-tax income by $22 million in
the current quarter compared to $132 million in the prior year
quarter.
Adjusted pre-tax operating income ("APTOI") was $813 million, a
29% increase over the prior year quarter. Excluding variable
investment income, APTOI was $776 million, a 23% increase over the
prior year quarter, the result of higher base spread income,
partially offset by higher interest expense on financial debt. The
annual actuarial assumption review favorably impacted APTOI by $22
million in the current quarter compared to $29 million in the prior
year quarter.
Premiums and deposits were $9.1 billion, a 4% increase over the
prior year quarter. Excluding transactional activity (i.e., pension
risk transfer, guaranteed investment contracts and Group Retirement
plan acquisitions), premiums and deposits grew 3% over the prior
year quarter. These results mainly reflect higher fixed index
annuity and fixed annuity deposits, partially offset by lower
variable annuity deposits in Individual Retirement and Group
Retirement.
Net investment income was $2.7 billion, a 23% increase over the
prior year quarter, while net investment income on an APTOI basis
was $2.5 billion, a 21% increase over the prior year quarter. This
improvement was due in large part to higher base portfolio income,
which grew $432 million, or 22%, over the prior year quarter. This
increase in net investment income was supplemented by variable
investment income which grew $38 million over the same period.
CAPITAL AND LIQUIDITY HIGHLIGHTS
- Holding company liquidity of $1.7 billion as of September 30,
2023
- Financial leverage ratio of 27.2%
- Life Fleet RBC Ratio remains above 400% target
- Adjusted book value per share of $38.23 grew on a sequential
quarter basis due to strong earnings while returning $192 million
to shareholders
- Paid quarterly cash dividend of $0.23 per share of common
stock
- Repurchased $102 million of shares from public market through
October 31, 2023
- Declared special dividend of $1.16 per share of common stock on
October 31, 2023 out of the net proceeds from the sale of Laya
Healthcare, payable on November 22, 2023, to shareholders of record
at the close of business on November 13, 2023
- Declared quarterly dividend of $0.23 per share of common stock
on November 2, 2023, payable on December 29, 2023, to shareholders
of record at the close of business on December 15, 2023
BUSINESS RESULTS
Individual
Retirement
Three Months Ended September
30,
($ in millions)
2023
2022
Premiums and deposits
$
3,961
$
3,792
Spread income
$
672
$
463
Base spread income
$
662
$
476
Variable investment income
$
10
$
(13
)
Fee income2
$
289
$
300
Adjusted pre-tax operating income
$
576
$
375
- Premiums and deposits increased $169 million, or 4%, over the
prior year quarter largely driven by growth of fixed index annuity
and fixed annuity deposits, partially offset by lower variable
annuity deposits
- Base net investment spread1 of 2.47% for the third quarter of
2023 expanded 62 basis points and 6 basis points on a prior year
and sequential quarter basis, respectively
- APTOI increased $201 million, or 54%, year over year primarily
due to higher base spread income, higher variable investment income
and lower general operating expenses, partially offset by lower fee
income
Group
Retirement
Three Months Ended September
30,
($ in millions)
2023
2022
Premiums and deposits
$
1,831
$
2,039
Spread income
$
209
$
205
Base spread income
$
192
$
199
Variable investment income
$
17
$
6
Fee income
$
180
$
175
Adjusted pre-tax operating income
$
192
$
190
- Premiums and deposits decreased $208 million, or 10%, from the
prior year quarter due to lower plan acquisitions and out-of-plan
variable annuity deposits, partially offset by higher out-of-plan
fixed annuity deposits
- Base net investment spread of 1.52% for the third quarter of
2023 compressed 5 basis points and 3 basis points on a prior year
quarter and sequential quarter basis, respectively
- APTOI increased $2 million, or 1%, year over year primarily due
to higher fee income, partially offset by lower net investment
income
Life
Insurance
Three Months Ended September
30,
($ in millions)
2023
2022
Premiums and deposits
$
1,085
$
1,057
Underwriting margin2
$
384
$
370
Underwriting margin excluding variable
investment income
$
381
$
368
Variable investment income
$
3
$
2
Adjusted pre-tax operating income
$
136
$
124
- APTOI increased $12 million, or 10%, primarily due to higher
base portfolio income and lower general operating expenses,
partially offset by a less favorable impact from the annual
actuarial assumption review
- Mortality experience was less favorable compared to prior year
quarter, but consistent with year-to-date experience
Institutional
Markets
Three Months Ended September
30,
($ in millions)
2023
2022
Premiums and deposits
$
2,256
$
1,897
Spread income
$
70
$
66
Base spread income
$
64
$
63
Variable investment income
$
6
$
3
Fee income
$
16
$
16
Underwriting margin
$
14
$
19
Underwriting margin excluding variable
investment income
$
13
$
18
Variable investment income
$
1
$
1
Adjusted pre-tax operating income
$
75
$
83
- Premiums and deposits increased $359 million, or 19%, over the
prior year quarter driven by higher volume of guaranteed investment
contracts issuances, partially offset by lower volume of pension
risk transfer transactions. Guaranteed investment contracts
issuances were $1.9 billion for the third quarter of 2023 compared
to $1.0 billion for the third quarter of 2022. Pension risk
transfer sales were $137 million for the third quarter of 2023
compared to $756 million for the third quarter of 2022
- APTOI decreased $8 million, or 10%, year over year primarily
due to lower underwriting margin driven by less favorable mortality
experience in Corporate Markets
Corporate and
Other3
Three Months Ended September
30,
($ in millions)
2023
2022
Corporate expenses
$
(44
)
$
(49
)
Interest on financial debt
$
(110
)
$
(85
)
Asset management
$
5
$
12
Consolidated investment entities
$
(1
)
$
14
Other
$
(16
)
$
(34
)
Adjusted pre-tax operating income
(loss)
$
(166
)
$
(142
)
- APTOI decreased $24 million year over year primarily due to
higher interest expense on financial debt
1
This release refers to financial
measures not calculated in accordance with generally accepted
accounting principles (non-GAAP); definitions of non-GAAP measures
and reconciliations to their most directly comparable GAAP measures
can be found in "Non-GAAP Financial Measures" below
2
This release refers to key
operating metrics and key terms. Information about these metrics
and terms can be found in "Key Operating Metrics and Key Terms"
below
3
Includes consolidations and
eliminations
CONFERENCE CALL
Corebridge will host a conference call on Friday, November 3,
2023, at 8:30 a.m. EDT to review these results. The call is open to
the public and can be accessed via a live listen-only webcast in
the Investors section of corebridgefinancial.com. A replay will be
available after the call at the same location.
Supplemental financial data and our investor presentation are
available in the Investors section of corebridgefinancial.com.
About Corebridge Financial
Corebridge Financial, Inc. makes it possible for more people to
take action in their financial lives. With more than $360 billion
in assets under management and administration as of September 30,
2023, Corebridge Financial is one of the largest providers of
retirement solutions and insurance products in the United States.
We proudly partner with financial professionals and institutions to
help individuals plan, save for and achieve secure financial
futures. For more information, visit corebridgefinancial.com and
follow us on LinkedIn and YouTube. These references with additional
information about Corebridge have been provided as a convenience,
and the information contained on such websites is not incorporated
by reference into this press release.
In the discussion below, “we,” “us” and “our” refer to
Corebridge and its consolidated subsidiaries, unless the context
refers solely to Corebridge as a corporate entity.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
Certain statements in this press release and other publicly
available documents may include statements of historical or present
fact, which, to the extent they are not statements of historical or
present fact, constitute “forward looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by the use of
words such as “expects,” “believes,” “anticipates,” “intends,”
“seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,”
“should,” “would,” “could,” “may,” “will,” “shall” or variations of
such words are generally part of forward-looking statements. Also,
forward-looking statements include, without limitation, all matters
that are not historical facts. Forward-looking statements are made
based on management’s current expectations and beliefs concerning
future developments and their potential effects upon Corebridge and
its consolidated subsidiaries. There can be no assurance that
future developments affecting Corebridge and its consolidated
subsidiaries will be those anticipated by management.
Any forward-looking statements included herein are not a
guarantee of future performance and involve risks and
uncertainties, and there are certain important factors that could
cause actual results to differ, possibly materially, from
expectations or estimates reflected or implied in such
forward-looking statements, including, among others, risks related
to:
- changes in interest rates and changes to credit spreads, the
deterioration of economic conditions, an economic slowdown or
recession, changes in market conditions, weakening in capital
markets, volatility in equity markets, inflationary pressures,
pressures on the commercial real estate market, stress and
instability in the banking sector, geopolitical events or
conflicts, including the continued armed conflict between Ukraine
and Russia and in the Middle East;
- insurance risk and related exposures, including risks related
to insurance liability claims exceeding reserves and reinsurance
becoming unavailable;
- our investment portfolio and concentration of investments,
including risks related to realization of gross unrealized losses
on fixed maturity securities and changes in investment
valuations;
- liquidity, capital and credit, including risks related to our
access to funds from our subsidiaries being restricted, the
possible incurrence of additional debt, the ability to refinance
existing debt, the illiquidity of some of our investments, a
downgrade in our insurer financial strength ratings and
non-performance by counterparties;
- our business and operations, including risks related to pricing
for our products, guarantees within certain of our products, our
use of derivatives instruments, marketing and distribution of our
products through third parties, our reliance on third parties to
provide and adequately perform business and administrative
services, maintaining the availability of our critical technology
systems, our risk management policies becoming ineffective,
significant legal or regulatory proceedings, our business strategy
becoming ineffective, intense competition, catastrophes, changes in
our accounting principles and financial reporting requirements, our
foreign operations, business or asset acquisitions and dispositions
and our ability to protect our intellectual property;
- the intense regulation of our business;
- estimates and assumptions, including risks related to estimates
or assumptions used in the preparation of our financial statements
differing materially from actual experience, the effectiveness of
our productivity improvement initiatives and impairments of
goodwill;
- competition and employees, including risks related to our
ability to attract and retain key employees and employee error and
misconduct;
- our investment managers, including our reliance on agreements
with Blackstone ISG-1 Advisors L.L.C. which we have a limited
ability to terminate or amend, the historical performance of our
investment managers not being indicative of future results of our
investment portfolio, and increased regulation or scrutiny of
investment advisers and investment activities;
- our separation from AIG, including risks related to the
replacement or replication of functions and the loss of benefits
from AIG’s global contracts, our inability to file a single US
consolidated income federal income tax return for a five-year
period, and limitations on our ability to use deferred tax assets
to offset future taxable income;
- our agreements with Fortitude Reinsurance Company Ltd.;
and
- other factors discussed in “Management’s Discussion and
Analysis of Financial Conditions and Results of Operations” and
“Risk Factors” in our Registration Statement on Form S-1 filed on
June 5, 2023 with the U.S. Securities and Exchange Commission.
Forward-looking statements should be read in conjunction with
the other cautionary statements, risks, uncertainties and other
factors identified in our filings with the Securities and Exchange
Commission. Further, any forward-looking statement speaks only as
of the date on which it is made, and we undertake no obligation to
update or revise any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events, except as otherwise
may be required by law.
NON-GAAP FINANCIAL MEASURES
Throughout this release, we present our financial condition and
results of operations in the way we believe will be most meaningful
and representative of our business results. Some of the
measurements we use are ‘‘non-GAAP financial measures’’ under
Securities and Exchange Commission rules and regulations. We
believe presentation of these non-GAAP financial measures allows
for a deeper understanding of the profitability drivers of our
business, results of operations, financial condition and liquidity.
These measures should be considered supplementary to our results of
operations and financial condition that are presented in accordance
with GAAP and should not be viewed as a substitute for GAAP
measures. The non-GAAP financial measures we present may not be
comparable to similarly-named measures reported by other
companies.
Adjusted pre-tax operating income (“APTOI”) is derived by
excluding the items set forth below from income from operations
before income tax. These items generally fall into one or more of
the following broad categories: legacy matters having no relevance
to our current businesses or operating performance; adjustments to
enhance transparency to the underlying economics of transactions;
and recording adjustments to APTOI that we believe to be common in
our industry. We believe the adjustments to pre-tax income are
useful for gaining an understanding of our overall results of
operations.
APTOI excludes the impact of the following items:
FORTITUDE RELATED ADJUSTMENTS:
The modco reinsurance agreements with Fortitude Re transfer the
economics of the invested assets supporting the reinsurance
agreements to Fortitude Re. Accordingly, the net investment income
on Fortitude Re funds withheld assets and the net realized gains
(losses) on Fortitude Re funds withheld assets are excluded from
APTOI. Similarly, changes in the Fortitude Re funds withheld
embedded derivative are also excluded from APTOI.
The ongoing results associated with the reinsurance agreement
with Fortitude Re have been excluded from APTOI as these are not
indicative of our ongoing business operations.
INVESTMENT RELATED ADJUSTMENTS:
APTOI excludes “Net realized gains (losses)”, including changes
in the allowance for credit losses on available-for-sale securities
and loans, as well as gains or losses from sales of securities,
except for gains (losses) related to the disposition of real estate
investments. Net realized gains (losses), except for gains (losses)
related to the disposition of real estate investments, are excluded
as the timing of sales on invested assets or changes in allowances
depend largely on market credit cycles and can vary considerably
across periods. In addition, changes in interest rates may create
opportunistic scenarios to buy or sell invested assets. Our
derivative results, including those used to economically hedge
insurance liabilities or are recognized as embedded derivatives at
fair value are also included in Net realized gains (losses) and are
similarly excluded from APTOI except earned income (periodic
settlements and changes in settlement accruals) on derivative
instruments used for non-qualifying (economic) hedges or for asset
replication. Earned income on such economic hedges is reclassified
from Net realized gains and losses to specific APTOI line items
based on the economic risk being hedged (e.g., Net investment
income and Interest credited to policyholder account balances).
MARKET RISK BENEFIT ADJUSTMENTS ("MRBs"):
Certain of our variable annuity, fixed annuity and fixed index
annuity contracts contain guaranteed minimum withdrawal benefits
(“GMWBs”) and/or guaranteed minimum death benefits (“GMDBs”) which
are accounted for as MRBs. Changes in the fair value of these MRBs
(excluding changes related to our own credit risk), including
certain rider fees attributed to the MRBs, along with changes in
the fair value of derivatives used to hedge MRBs are recorded
through “Change in the fair value of MRBs, net” and are excluded
from APTOI.
Changes in the fair value of securities used to economically
hedge MRBs are excluded from APTOI.
OTHER ADJUSTMENTS:
Other adjustments represent all other adjustments that are
excluded from APTOI and includes the net pre-tax operating income
(losses) from noncontrolling interests related to consolidated
investment entities. The excluded adjustments include, as
applicable:
- restructuring and other costs related to initiatives designed
to reduce operating expenses, improve efficiency and simplify our
organization;
- non-recurring costs associated with the implementation of
non-ordinary course legal or regulatory changes or changes to
accounting principles;
- separation costs;
- non-operating litigation reserves and settlements;
- loss (gain) on extinguishment of debt, if any;
- losses from the impairment of goodwill, if any; and
- income and loss from divested or run-off business, if any.
Adjusted after-tax operating income attributable to our
common shareholders (“Adjusted After-tax Operating Income” or
“AATOI”) is derived by excluding the tax effected APTOI
adjustments described above, as well as the following tax items
from net income attributable to us:
- changes in uncertain tax positions and other tax items related
to legacy matters having no relevance to our current businesses or
operating performance; and
- deferred income tax valuation allowance releases and
charges.
Adjusted Book Value is derived by excluding AOCI,
adjusted for the cumulative unrealized gains and losses related to
Fortitude Re’s funds withheld assets. We believe this measure is
useful to investors as it eliminates the asymmetrical impact
resulting from changes in fair value of our available-for-sale
securities portfolio for which there is largely no offsetting
impact for certain related insurance liabilities that are not
recorded at fair value with changes in fair value recorded through
OCI. It also eliminates asymmetrical impacts where our own credit
non-performance risk is recorded through OCI. In addition, we
adjust for the cumulative unrealized gains and losses related to
Fortitude Re’s funds withheld assets since these fair value
movements are economically transferred to Fortitude Re.
Adjusted Book Value per Common Share is computed as
adjusted book value divided by total common shares outstanding.
Adjusted Return on Average Equity (“Adjusted ROAE”) is
derived by dividing AATOI by average Adjusted Book Value and is
used by management to evaluate our recurring profitability and
evaluate trends in our business. We believe this measure is useful
to investors as it eliminates the asymmetrical impact resulting
from changes in fair value of our available-for-sale securities
portfolio for which there is largely no offsetting impact for
certain related insurance liabilities that are not recorded at fair
value with changes in fair value recorded through OCI. It also
eliminates asymmetrical impacts where our own credit
non-performance risk is recorded through OCI. In addition, we
adjust for the cumulative unrealized gains and losses related to
Fortitude Re’s funds withheld assets since these fair value
movements are economically transferred to Fortitude Re.
Adjusted revenues exclude Net realized gains (losses)
except for gains (losses) related to the disposition of real estate
investments, income from non-operating litigation settlements
(included in Other income for GAAP purposes) and changes in fair
value of securities used to hedge guaranteed living benefits
(included in Net investment income for GAAP purposes).
Net investment income (APTOI basis) is the sum of base
portfolio income and variable investment income.
Operating Earnings per Common Share ("Operating EPS") is
derived by dividing AATOI by weighted average diluted shares.
Premiums and deposits is a non-GAAP financial measure
that includes direct and assumed premiums received and earned on
traditional life insurance policies and life-contingent payout
annuities, as well as deposits received on universal life
insurance, investment-type annuity contracts and GICs. We believe
the measure of premiums and deposits is useful in understanding
customer demand for our products, evolving product trends and our
sales performance period over period.
KEY OPERATING METRICS AND KEY TERMS
Base net investment spread means base yield less cost of
funds, excluding the amortization of deferred sales inducement
assets.
Base spread income means base portfolio income less
interest credited to policyholder account balances, excluding the
amortization of deferred sales inducement assets.
Base yield means the returns from base portfolio income
including accretion and impacts from holding cash and short-term
investments.
Cost of funds means the interest credited to
policyholders excluding the amortization of deferred sales
inducement assets.
Fee and Spread Income and Underwriting Margin
- Fee income is defined as policy fees plus advisory fees
plus other fee income. For our Institutional Markets segment, its
Stable Value Wrap products generate fee income.
- Spread income is defined as net investment income less
interest credited to policyholder account balances, exclusive of
amortization of deferred sales inducement assets. Spread income is
comprised of both base spread income and variable investment
income. For our Institutional Markets segment, its structured
settlements, PRT and GIC products generate spread income, which
includes premiums, net investment income, less interest credited
and policyholder benefits and excludes the annual assumption
update.
- Underwriting margin for our Life Insurance segment
includes premiums, policy fees, other income, net investment
income, less interest credited to policyholder account balances and
policyholder benefits and excludes the annual assumption update.
For our Institutional Markets segment, its Corporate Markets
products generate underwriting margin, which includes premiums, net
investment income, policy and advisory fee income, less interest
credited and policyholder benefits and excludes the annual
assumption update.
Financial leverage ratio means the ratio of financial
debt to the sum of financial debt plus Adjusted Book Value plus
non-redeemable noncontrolling interests.
Life Fleet RBC Ratio
- Life Fleet means American General Life Insurance Company
(“AGL”), The United States Life Insurance Company in the City of
New York (“USL”) and The Variable Annuity Life Insurance Company
(“VALIC”).
- Life Fleet RBC Ratio is the risk-based capital (“RBC”)
ratio for the Life Fleet. RBC ratios are quoted using the Company
Action Level.
Net Investment Income
- Base portfolio income includes interest, dividends and
foreclosed real estate income, net of investment expenses and
non-qualifying (economic) hedges.
- Variable investment income includes call and tender
income, commercial mortgage loan prepayments, changes in market
value of investments accounted for under the fair value option,
interest received on defaulted investments (other than foreclosed
real estate), income from alternative investments and other
miscellaneous investment income, including income of certain
partnership entities that are required to be consolidated.
Alternative investments include private equity funds which are
generally reported on a one-quarter lag.
RECONCILIATIONS
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:
Three Months Ended September
30,
2023
2022
(in millions)
Pre-tax
Total Tax (Benefit)
Charge
Non- controlling
Interests
After Tax
Pre-tax
Total Tax (Benefit)
Charge
Non- controlling
Interests
After Tax
Pre-tax income/net income, including
noncontrolling interests
$
2,461
$
392
$
—
$
2,069
$
3,172
$
640
$
—
$
2,532
Noncontrolling interests
—
—
32
32
—
—
(126
)
(126
)
Pre-tax income/net income attributable
to Corebridge
2,461
392
32
2,101
3,172
640
(126
)
2,406
Fortitude Re related items
Net investment income on Fortitude Re
funds withheld assets
(233
)
(52
)
—
(181
)
(157
)
(33
)
—
(124
)
Net realized (gains) losses on Fortitude
Re funds withheld assets
228
51
—
177
89
19
—
70
Net realized losses on Fortitude Re funds
withheld embedded derivative
(1,080
)
(239
)
—
(841
)
(1,463
)
(314
)
—
(1,149
)
Subtotal Fortitude Re related
items
(1,085
)
(240
)
—
(845
)
(1,531
)
(328
)
—
(1,203
)
Other reconciling Items:
Changes in uncertain tax positions and
other tax adjustments
—
(6
)
—
6
—
14
—
(14
)
Deferred income tax valuation allowance
(releases) charges
—
57
—
(57
)
—
(127
)
—
127
Change in fair value of market risk
benefits, net
(418
)
(88
)
—
(330
)
(435
)
(91
)
—
(344
)
Changes in fair value of securities used
to hedge guaranteed living benefits
4
1
—
3
(6
)
(1
)
—
(5
)
Changes in benefit reserves related to net
realized gains (losses)
(2
)
—
—
(2
)
(2
)
—
—
(2
)
Net realized (gains) losses(1)
(332
)
(70
)
—
(262
)
(542
)
(114
)
—
(428
)
Non-operating litigation reserves and
settlements
—
—
—
—
(3
)
—
—
(3
)
Separation costs
64
13
—
51
45
99
—
(54
)
Restructuring and other costs
82
17
—
65
59
12
—
47
Non-recurring costs related to regulatory
or accounting changes
6
2
—
4
1
—
—
1
Net (gain) loss on divestiture
1
60
—
(59
)
(2
)
(1
)
—
(1
)
Pension expense - non operating
—
—
—
—
—
—
—
—
Noncontrolling interests
32
—
(32
)
—
(126
)
—
126
—
Subtotal: Non-Fortitude Re reconciling
items
(563
)
(14
)
(32
)
(581
)
(1,011
)
(209
)
126
(676
)
Total adjustments
(1,648
)
(254
)
(32
)
(1,426
)
(2,542
)
(537
)
126
(1,879
)
Adjusted pre-tax operating income
(loss)/Adjusted after-tax operating income (loss) attributable to
Corebridge common shareholders
$
813
$
138
$
—
$
675
$
630
$
103
$
—
$
527
(1)
Includes all net realized gains
and losses except earned income (periodic settlements and changes
in settlement accruals) on derivative instruments used for
non-qualifying (economic) hedging or for asset replication.
Additionally, gains (losses) related to the disposition of real
estate investments are also excluded from this adjustment
The following table presents Corebridge’s adjusted pre-tax
operating income by segment:
(in millions)
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate & Other
Eliminations
Total Corebridge
Three Months Ended September 30,
2023
Premiums
$
29
$
6
$
449
$
200
$
19
$
—
$
703
Policy fees
182
102
371
47
—
—
702
Net investment income
1,240
504
313
408
(2
)
(7
)
2,456
Net realized gains (losses)(1)
—
—
—
—
(5
)
—
(5
)
Advisory fee and other income
107
78
29
1
10
—
225
Total adjusted revenues
1,558
690
1,162
656
22
(7
)
4,081
Policyholder benefits
29
12
673
389
—
—
1,103
Interest credited to policyholder account
balances
582
298
86
165
—
—
1,131
Amortization of deferred policy
acquisition costs
150
21
95
2
—
—
268
Non-deferrable insurance commissions
90
29
22
5
—
—
146
Advisory fee expenses
35
29
1
—
—
—
65
General operating expenses
96
109
149
20
85
—
459
Interest expense
—
—
—
—
132
(4
)
128
Total benefits and expenses
982
498
1,026
581
217
(4
)
3,300
Noncontrolling interests
—
—
—
—
32
—
32
Adjusted pre-tax operating income
(loss)
$
576
$
192
$
136
$
75
$
(163
)
$
(3
)
$
813
(in millions)
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate & Other
Eliminations
Total Corebridge
Three Months Ended September 30,
2022
Premiums
$
56
$
3
$
417
$
804
$
20
$
—
$
1,300
Policy fees
192
101
393
49
—
—
735
Net investment income
940
491
307
257
39
(3
)
2,031
Net realized gains (losses)(1)
—
—
—
—
132
—
132
Advisory fee and other income
108
74
28
—
31
—
241
Total adjusted revenues
1,296
669
1,145
1,110
222
(3
)
4,439
Policyholder benefits
69
5
666
918
—
—
1,658
Interest credited to policyholder account
balances
492
289
84
85
—
—
950
Amortization of deferred policy
acquisition costs
139
20
102
2
—
—
263
Non-deferrable insurance commissions
87
31
15
4
1
—
138
Advisory fee expenses
34
31
—
—
—
—
65
General operating expenses
100
103
154
18
97
1
473
Interest expense
—
—
—
—
144
(8
)
136
Total benefits and expenses
921
479
1,021
1,027
242
(7
)
3,683
Noncontrolling interests
—
—
—
—
(126
)
—
(126
)
Adjusted pre-tax operating income
(loss)
$
375
$
190
$
124
$
83
$
(146
)
$
4
$
630
(1)
Net realized gains (losses)
includes the gains (losses) related to the disposition of real
estate investments
The following table presents a summary of Corebridge's spread
income, fee income and underwriting margin:
Three Months Ended September
30,
(in millions)
2023
2022
Individual Retirement
Spread income
$
672
$
463
Fee income
289
300
Total Individual Retirement
961
763
Group Retirement
Spread income
209
205
Fee income
180
175
Total Group Retirement
389
380
Life Insurance
Underwriting margin
384
370
Total Life Insurance
384
370
Institutional Markets
Spread income
70
66
Fee income
16
16
Underwriting margin
14
19
Total Institutional Markets
100
101
Total
Spread income
951
734
Fee income
485
491
Underwriting margin
398
389
Total
$
1,834
$
1,614
The following table presents Life Insurance underwriting
margin:
Three Months Ended September
30,
(in millions)
2023
2022
Premiums
$
449
$
417
Policy fees
371
393
Net investment income
313
307
Other income
29
28
Policyholder benefits
(673
)
(666
)
Interest credited to policyholder account
balances
(86
)
(84
)
Less: Impact of annual actuarial
assumption update
(19
)
(25
)
Underwriting margin
$
384
$
370
The following table presents Institutional Markets spread
income, fee income and underwriting margin:
Three Months Ended September
30,
(in millions)
2023
2022
Premiums
$
209
$
814
Net investment income
373
221
Policyholder benefits
(375
)
(910
)
Interest credited to policyholder account
balances
(137
)
(58
)
Less: Impact of annual actuarial
assumption update
—
(1
)
Spread income(1)
$
70
$
66
SVW fees
16
16
Fee income
$
16
$
16
Premiums
(9
)
(10
)
Policy fees (excluding SVW)
31
33
Net investment income
35
34
Other income
1
—
Policyholder benefits
(14
)
(8
)
Interest credited to policyholder account
balances
(28
)
(27
)
Less: Impact of annual actuarial
assumption update
(2
)
(3
)
Underwriting margin(2)
$
14
$
19
(1)
Represents spread income from
Pension Risk Transfer, Guaranteed Investment Contracts and
Structured Settlement products
(2)
Represents underwriting margin
from Corporate Markets products, including COLI-BOLI, private
placement variable universal life insurance and private placement
variable annuity products
The following table presents Operating EPS:
Three Months Ended September
30,
(in millions, except per common share
data)
2023
2022
GAAP
Basis
Numerator for
EPS
Net income (loss)
$
2,069
$
2,532
Less: Net income (loss) attributable to
noncontrolling interests
(32
)
126
Net income (loss) attributable to
Corebridge common shareholders
$
2,101
$
2,406
Denominator for
EPS
Weighted average common shares outstanding
- basic(1)
639.0
645.7
Dilutive common shares(2)
2.0
0.7
Weighted average common shares outstanding
- diluted
641.0
646.4
Income per common
share attributable to Corebridge common shareholders
Common stock - basic
$
3.29
$
3.73
Common stock - diluted
$
3.28
$
3.72
Operating
Basis
Adjusted after-tax operating income
attributable to Corebridge shareholders
$
675
$
527
Weighted average common shares outstanding
- diluted
641.0
646.4
Operating earnings per common share
$
1.05
$
0.82
(1)
Includes vested shares under our
share-based employee compensation plans
(2)
Potential dilutive common shares
include our share-based employee compensation plans
The following table presents the reconciliation of Adjusted Book
Value:
At Period End
September 30, 2023
June 30, 2023
September 30, 2022
(in millions, except per share
data)
Total Corebridge shareholders' equity
(a)
$
8,366
$
10,561
$
8,595
Less: Accumulated other comprehensive
income (AOCI)
(19,294
)
(15,182
)
(17,954
)
Add: Cumulative unrealized gains and
losses related to Fortitude Re funds withheld assets
(3,439
)
(2,568
)
(2,951
)
Total adjusted book value (b)
$
24,221
$
23,175
$
23,598
Total common shares outstanding (c)(1)
633.5
636.0
645.0
Book value per common share (a/c)
$
13.21
$
16.61
$
13.33
Adjusted book value per common share
(b/c)
$
38.23
$
36.44
$
36.59
(1)
Total common shares outstanding
are presented net of treasury stock
The following table presents the reconciliation of Adjusted
ROAE:
Three Months Ended September
30,
(in millions, unless otherwise
noted)
2023
2022
Actual or annualized net income (loss)
attributable to Corebridge shareholders (a)
$
8,404
$
9,624
Actual or annualized adjusted after-tax
operating income attributable to Corebridge shareholders (b)
2,700
2,108
Average Corebridge Shareholders’ equity
(c)
9,464
10,423
Less: Average AOCI
(17,238
)
(15,030
)
Add: Average cumulative unrealized gains
and losses related to Fortitude Re funds withheld assets
(3,004
)
(2,337
)
Average Adjusted Book Value (d)
$
23,698
$
23,116
Return on Average Equity
(a/c)
88.8
%
92.3
%
Adjusted ROAE (b/d)
11.4
%
9.1
%
The following table presents a reconciliation of net investment
income (net income basis) to net investment income (APTOI
basis):
Three Months Ended September
30,
(in millions)
2023
2022
Net investment income (net income
basis)
$
2,657
$
2,160
Net investment (income) on Fortitude Re
funds withheld assets
(233
)
(157
)
Change in fair value of securities used to
hedge guaranteed living benefits
(14
)
(13
)
Other adjustments
(7
)
(13
)
Derivative income recorded in net realized
investment gains (losses)
53
54
Total adjustments
(201
)
(129
)
Net investment income (APTOI
basis)(1)
$
2,456
$
2,031
(1)
Includes net investment income
(loss) from Corporate and Other of $(9) million and $36 million for
the three months ended September 30, 2023 and September 30, 2022,
respectively
The following table presents the premiums and deposits:
Three Months Ended September
30,
(in millions)
2023
2022
Individual Retirement
Premiums
$
29
$
56
Deposits
3,935
3,740
Other(1)
(3
)
(4
)
Premiums and deposits
3,961
3,792
Group Retirement
Premiums
6
3
Deposits
1,825
2,036
Premiums and deposits(2)(3)
1,831
2,039
Life Insurance
Premiums
449
417
Deposits
393
404
Other(1)
243
236
Premiums and deposits
1,085
1,057
Institutional Markets
Premiums
200
804
Deposits
2,048
1,085
Other(1)
8
8
Premiums and deposits
2,256
1,897
Total
Premiums
684
1,280
Deposits
8,201
7,265
Other(1)
248
240
Premiums and deposits
$
9,133
$
8,785
(1)
Other principally consists of
ceded premiums, in order to reflect gross premiums and deposits
(2)
Includes premiums and deposits
related to in-plan mutual funds of $773 million and $896 million
for the three months ended September 30, 2023 and September 30,
2022, respectively
(3)
Excludes client deposits into
advisory and brokerage accounts of $656 million and $463 million
for the three months ended September 30, 2023 and September 30,
2022, respectively
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102958786/en/
Işıl Müderrisoğlu (Investors):
investorrelations@corebridgefinancial.com Matt Ward (Media):
media.contact@corebridgefinancial.com
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