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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Corebridge Financial Inc | NYSE:CRBG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.28 | 0.92% | 30.62 | 31.09 | 30.4125 | 30.64 | 2,994,948 | 01:00:00 |
Fourth Quarter
Full Year
Corebridge Financial, Inc. ("Corebridge" or the "Company") (NYSE: CRBG) today reported financial results for the fourth quarter and full year ended December 31, 2023.
Kevin Hogan, President and Chief Executive Officer of Corebridge, said, “Corebridge reported full year adjusted after-tax operating income of $2.6 billion, a 12% increase, executing on our strategic and operational priorities while capitalizing on market opportunities. We increased annual sales across our diversified portfolio of spread-based products by 60% and total company premiums and deposits by 26% year over year. We also grew general account assets by 5% to $220 billion, and improved base spread income by 30% in 2023, contributing to healthy margins across our high-quality businesses.
“Corebridge maintains a robust financial position and continues to generate consistent cash flows, supporting a strong balance sheet and meaningful capital return. Over the last five years, our insurance companies have distributed over $2 billion per year while maintaining a Life Fleet RBC Ratio over 400%, demonstrating the resilience of our business franchise through market cycles. Additionally, we returned $2.2 billion of capital to shareholders in 2023 with $1.1 billion in the fourth quarter alone.
“Corebridge is positioned for continued success in 2024, supported by our diversified business model, broad distribution platform, disciplined risk management, strategic investment partnerships and financial flexibility. We remain focused on creating long-term value for shareholders, evidenced by the announced sales of our international operations, and are confident in our ability to deliver attractive levels of capital return. We will continue to look across our portfolio to allocate resources where the available risk-adjusted returns are highest and where customer needs are greatest.“
CONSOLIDATED RESULTS
Three Months Ended December 31,
Twelve Months Ended December 31,
($ in millions, except per share data)
2023
2022
2023
2022
Net income (loss) attributable to common shareholders
$
(1,309
)
$
(207
)
$
1,104
$
8,159
Income (loss) per common share attributable to common shareholders
$
(2.07
)
$
(0.32
)
$
1.71
$
12.60
Weighted average shares outstanding - diluted
633.0
648.7
645.2
647.4
Adjusted after-tax operating income
$
661
$
610
$
2,647
$
2,371
Operating EPS
$
1.04
$
0.93
$
4.10
$
3.66
Weighted average shares outstanding - operating
635.3
653.1
645.2
647.4
Book value per common share
$
18.93
$
14.54
$
18.93
$
14.54
Adjusted book value per common share1
$
36.82
$
36.34
$
36.82
$
36.34
Total common shares outstanding
621.7
645.0
621.7
645.0
Pre-tax income (loss)
$
(1,763
)
$
(307
)
$
940
$
10,491
Adjusted pre-tax operating income1
$
820
$
704
$
3,193
$
2,854
Premiums and deposits
$
10,472
$
8,694
$
39,887
$
31,623
Net investment income
$
3,012
$
2,555
$
11,078
$
9,576
Net investment income (APTOI basis)1
$
2,568
$
2,307
$
9,839
$
8,758
Base portfolio income2 - insurance operating businesses
$
2,564
$
2,200
$
9,607
$
7,884
Variable investment income2 - insurance operating businesses
$
4
$
23
$
165
$
442
Corporate and other3
$
—
$
84
$
67
$
432
Return on average equity
(52.0
%)
(9.2
%)
10.7
%
52.6
%
Adjusted return on average equity1
11.2
%
10.4
%
11.3
%
10.4
%
Fourth Quarter
Net loss was $1.3 billion, compared to $207 million in the prior year quarter. The change largely was driven by realized losses recorded for the Fortitude Re funds withheld embedded derivative, partially offset by higher net investment income.
Adjusted pre-tax operating income ("APTOI") was $820 million, a 16% increase over the prior year quarter due to higher net investment income, partially offset by lower variable investment income. Excluding variable investment income, APTOI grew 20% over the same period, primarily the result of higher base spread income and expense efficiencies, partially offset by lower underwriting margin.
Premiums and deposits were $10.5 billion, a 20% 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 21% over the same period. These results mainly reflect higher fixed annuity and fixed index annuity deposits, partially offset by lower variable annuity deposits in Individual Retirement and Group Retirement.
Net investment income was $3.0 billion, an 18% increase over the prior year quarter, and net investment income on an APTOI basis was $2.6 billion, an 11% increase over the same period. This improvement was due in large part to higher base portfolio income, which grew $364 million, or 17%, over the prior year quarter. This increase in net investment income was partially offset by variable investment income which declined $19 million, or 83%, over the same period.
Full Year
Net income was $1.1 billion, compared to $8.2 billion in the prior year. The change largely was driven by realized losses recorded for the Fortitude Re funds withheld embedded derivative, partially offset by higher net investment income and changes in the fair value of market risk benefits.
APTOI was $3.2 billion, a 12% increase over the prior year due to higher net investment income, partially offset by lower variable investment income. Excluding variable investment income, APTOI grew 26% over the same period, the result of higher base spread income and expense efficiencies, partially offset by lower fee income and higher interest expense on financial debt arising from the Company's new capital structure.
Premiums and deposits were $39.9 billion, a 26% increase over the prior year. Excluding transactional activity, premiums and deposits grew 14% over the same period. These results mainly reflect higher fixed annuity and fixed index annuity deposits, partially offset by lower variable annuity deposits in Individual Retirement and Group Retirement.
Net investment income was $11.1 billion, a 16% increase over the prior year, and net investment income on an APTOI basis was $9.8 billion, a 12% increase over the same period. This improvement was due in large part to higher base portfolio income, which grew $1.7 billion, or 22%, over the prior year. This increase in net investment income was partially offset by variable investment income which declined $277 million, or 63%, over the same period.
CAPITAL AND LIQUIDITY HIGHLIGHTS
BUSINESS RESULTS
Individual Retirement
Three Months Ended December 31,
($ in millions)
2023
2022
Premiums and deposits
$
5,282
$
3,827
Spread income
$
715
$
574
Base spread income
$
704
$
552
Variable investment income
$
11
$
22
Fee income2
$
288
$
283
Adjusted pre-tax operating income
$
628
$
465
Group Retirement
Three Months Ended December 31,
($ in millions)
2023
2022
Premiums and deposits
$
2,083
$
2,243
Spread income
$
193
$
210
Base spread income
$
189
$
209
Variable investment income
$
4
$
1
Fee income
$
181
$
169
Adjusted pre-tax operating income
$
179
$
172
Life Insurance
Three Months Ended December 31,
($ in millions)
2023
2022
Premiums and deposits
$
1,103
$
1,073
Underwriting margin2
$
341
$
430
Underwriting margin excluding variable investment income
$
343
$
425
Variable investment income
$
(2
)
$
5
Adjusted pre-tax operating income
$
79
$
142
Institutional Markets
Three Months Ended December 31,
($ in millions)
2023
2022
Premiums and deposits
$
2,004
$
1,551
Spread income
$
86
$
51
Base spread income
$
94
$
57
Variable investment income
$
(8
)
$
(6
)
Fee income
$
16
$
16
Underwriting margin
$
20
$
17
Underwriting margin excluding variable investment income
$
21
$
17
Variable investment income
$
(1
)
$
—
Adjusted pre-tax operating income
$
93
$
60
Corporate and Other
Three Months Ended December 31,
($ in millions)
2023
2022
Corporate expenses
$
(36
)
$
(46
)
Interest on financial debt
$
(107
)
$
(103
)
Asset management
$
—
$
15
Consolidated investment entities
$
(2
)
$
2
Other
$
(14
)
$
(3
)
Adjusted pre-tax operating income (loss)
$
(159
)
$
(135
)
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
2This 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
3Includes consolidations and eliminations
CONFERENCE CALL
Corebridge will host a conference call on Thursday, February 15, 2024, at 8:30 a.m. EST 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 $380 billion in assets under management and administration as of December 31, 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. There can be no assurance that future developments affecting Corebridge 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:
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. You are advised, however, to consult any further disclosures we make on related subjects in our filings with the SEC.
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 SEC 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 RE 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)”, 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:
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:
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.
Normalized distributions are defined as dividends paid by the Life Fleet subsidiaries as well as the international insurance subsidiaries, less non-recurring dividends, plus dividend capacity that would have been available to Corebridge absent strategies that resulted in utilization of tax attributes. We believe that presenting normalized distributions is useful in understanding a significant component of our liquidity as a stand-alone company.
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.
Assets Under Management and Administration
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
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
Net Investment Income
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 December 31,
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
$
(1,763
)
$
(432
)
$
—
$
(1,331
)
$
(307
)
$
(139
)
$
—
$
(168
)
Noncontrolling interests
—
—
22
22
—
—
(39
)
(39
)
Pre-tax income/net income attributable to Corebridge
(1,763
)
(432
)
22
(1,309
)
(307
)
(139
)
(39
)
(207
)
Fortitude Re related items
Net investment income on Fortitude Re funds withheld assets
(471
)
(91
)
—
(380
)
(274
)
(57
)
—
(217
)
Net realized (gains) losses on Fortitude Re funds withheld assets
(114
)
(27
)
—
(87
)
125
26
—
99
Net realized losses on Fortitude Re funds withheld embedded derivative
1,911
408
—
1,503
347
69
—
278
Subtotal Fortitude Re related items
1,326
290
—
1,036
198
38
—
160
Other reconciling Items:
Reclassification of disproportionate tax effects from AOCI and other tax adjustments
—
15
—
(15
)
—
5
—
(5
)
Deferred income tax valuation allowance (releases) charges
—
(17
)
—
17
—
(6
)
—
6
Change in fair value of market risk benefits, net
478
101
—
377
(245
)
(50
)
—
(195
)
Changes in fair value of securities used to hedge guaranteed living benefits
5
1
—
4
(1
)
—
—
(1
)
Changes in benefit reserves related to net realized gains (losses)
—
—
—
—
(4
)
(1
)
—
(3
)
Net realized (gains) losses(1)
1,253
268
—
985
1,019
214
—
805
Non-operating litigation reserves and settlements
—
—
—
—
—
—
—
—
Separation costs
59
12
—
47
54
26
—
28
Restructuring and other costs
60
12
—
48
22
5
—
17
Non-recurring costs related to regulatory or accounting changes
1
—
—
1
7
2
—
5
Net (gain) loss on divestiture
(621
)
(91
)
—
(530
)
—
—
—
—
Pension expense - non operating
—
—
—
—
—
—
—
—
Noncontrolling interests
22
—
(22
)
—
(39
)
—
39
—
Subtotal: Non-Fortitude Re reconciling items
1,257
301
(22
)
934
813
195
39
657
Total adjustments
2,583
591
(22
)
1,970
1,011
233
39
817
Adjusted pre-tax operating income (loss)/Adjusted after-tax operating income (loss) attributable to Corebridge common shareholders
$
820
$
159
$
—
$
661
$
704
$
94
$
—
$
610
Twelve Months Ended December 31,
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
$
940
$
(96
)
$
—
$
1,036
$
10,491
$
2,012
$
—
$
8,479
Noncontrolling interests
—
—
68
68
—
—
(320
)
(320
)
Pre-tax income/net income attributable to Corebridge
940
(96
)
68
1,104
10,491
2,012
(320
)
8,159
Fortitude Re related items
Net investment income on Fortitude Re funds withheld assets
(1,368
)
(291
)
—
(1,077
)
(891
)
(187
)
—
(704
)
Net realized (gains) losses on Fortitude Re funds withheld assets
224
48
—
176
397
83
—
314
Net realized losses on Fortitude Re funds withheld embedded derivative
1,734
369
—
1,365
(6,347
)
(1,370
)
—
(4,977
)
Subtotal Fortitude Re related items
590
126
—
464
(6,841
)
(1,474
)
—
(5,367
)
Other reconciling Items:
Reclassification of disproportionate tax effects from AOCI and other tax adjustments
—
89
—
(89
)
—
95
—
(95
)
Deferred income tax valuation allowance (releases) charges
—
(11
)
—
11
—
(157
)
—
157
Change in fair value of market risk benefits, net
(6
)
(1
)
—
(5
)
(958
)
(199
)
—
(759
)
Changes in fair value of securities used to hedge guaranteed living benefits
16
3
—
13
(30
)
(6
)
—
(24
)
Changes in benefit reserves related to net realized gains (losses)
(6
)
(1
)
—
(5
)
(15
)
(3
)
—
(12
)
Net realized (gains) losses(1)
1,792
381
—
1,411
211
44
—
167
Non-operating litigation reserves and settlements
—
—
—
—
(25
)
(5
)
—
(20
)
Separation costs
245
51
—
194
180
142
—
38
Restructuring and other costs
197
41
—
156
147
31
—
116
Non-recurring costs related to regulatory or accounting changes
18
4
—
14
12
3
—
9
Net (gain) loss on divestiture
(676
)
(43
)
—
(633
)
1
—
—
1
Pension expense - non operating
15
3
—
12
1
—
—
1
Noncontrolling interests
68
—
(68
)
—
(320
)
—
320
—
Subtotal: Non-Fortitude Re reconciling items
1,663
516
(68
)
1,079
(796
)
(55
)
320
(421
)
Total adjustments
2,253
642
(68
)
1,543
(7,637
)
(1,529
)
320
(5,788
)
Adjusted pre-tax operating income (loss)/Adjusted after-tax operating income (loss) attributable to Corebridge common shareholders
$
3,193
$
546
$
—
$
2,647
$
2,854
$
483
$
—
$
2,371
(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 December 31, 2023
Premiums
$
40
$
4
$
459
$
1,921
$
19
$
—
$
2,443
Policy fees
180
102
371
50
—
—
703
Net investment income
1,316
488
325
439
7
(7
)
2,568
Net realized gains (losses)(1)
—
—
—
—
(2
)
—
(2
)
Advisory fee and other income
108
79
9
1
14
—
211
Total adjusted revenues
1,644
673
1,164
2,411
38
(7
)
5,923
Policyholder benefits
39
4
736
2,110
—
—
2,889
Interest credited to policyholder account balances
615
299
87
179
—
—
1,180
Amortization of deferred policy acquisition costs
147
20
90
3
—
—
260
Non-deferrable insurance commissions
85
34
28
5
1
—
153
Advisory fee expenses
36
31
—
—
—
—
67
General operating expenses
94
106
144
21
78
—
443
Interest expense
—
—
—
—
136
(3
)
133
Total benefits and expenses
1,016
494
1,085
2,318
215
(3
)
5,125
Noncontrolling interests
—
—
—
—
22
—
22
Adjusted pre-tax operating income (loss)
$
628
$
179
$
79
$
93
$
(155
)
$
(4
)
$
820
(in millions)
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate & Other
Eliminations
Total Corebridge
Three Months Ended December 31, 2022
Premiums
$
63
$
3
$
582
$
1,375
$
20
$
—
$
2,043
Policy fees
178
96
397
49
—
—
720
Net investment income
1,064
494
376
289
112
(28
)
2,307
Net realized gains (losses)(1)
—
—
—
—
27
—
27
Advisory fee and other income
105
73
27
1
20
—
226
Total adjusted revenues
1,410
666
1,382
1,714
179
(28
)
5,323
Policyholder benefits
73
7
866
1,524
—
—
2,470
Interest credited to policyholder account balances
504
288
86
105
—
—
983
Amortization of deferred policy acquisition costs
139
21
100
2
—
—
262
Non-deferrable insurance commissions
86
34
10
5
—
—
135
Advisory fee expenses
35
29
1
—
—
—
65
General operating expenses
108
115
177
18
87
(4
)
501
Interest expense
—
—
—
—
186
(22
)
164
Total benefits and expenses
945
494
1,240
1,654
273
(26
)
4,580
Noncontrolling interests
—
—
—
—
(39
)
—
(39
)
Adjusted pre-tax operating income (loss)
$
465
$
172
$
142
$
60
$
(133
)
$
(2
)
$
704
(in millions)
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate & Other
Eliminations
Total Corebridge
Twelve Months Ended December 31, 2023
Premiums
$
213
$
20
$
1,776
$
5,607
$
78
$
—
$
7,694
Policy fees
708
406
1,488
195
—
—
2,797
Net investment income
4,908
1,996
1,282
1,586
92
(25
)
9,839
Net realized gains (losses)(1)
—
—
—
—
(2
)
—
(2
)
Advisory fee and other income
426
309
93
2
54
—
884
Total adjusted revenues
6,255
2,731
4,639
7,390
222
(25
)
21,212
Policyholder benefits
204
31
2,838
6,298
(3
)
—
9,368
Interest credited to policyholder account balances
2,269
1,182
340
600
—
—
4,391
Amortization of deferred policy acquisition costs
572
82
379
9
—
—
1,042
Non-deferrable insurance commissions
355
124
88
19
2
—
588
Advisory fee expenses
141
118
2
—
—
—
261
General operating expenses
402
440
619
85
339
—
1,885
Interest expense
—
—
—
—
569
(17
)
552
Total benefits and expenses
3,943
1,977
4,266
7,011
907
(17
)
18,087
Noncontrolling interests
—
—
—
—
68
—
68
Adjusted pre-tax operating income (loss)
$
2,312
$
754
$
373
$
379
$
(617
)
$
(8
)
$
3,193
(in millions)
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate & Other
Eliminations
Total Corebridge
Twelve Months Ended December 31, 2022
Premiums
$
235
$
19
$
1,864
$
2,913
$
82
$
—
$
5,113
Policy fees
741
415
1,564
194
—
—
2,914
Net investment income
3,888
2,000
1,389
1,049
473
(41
)
8,758
Net realized gains (losses)(1)
—
—
—
—
170
—
170
Advisory fee and other income
451
305
121
2
121
—
1,000
Total adjusted revenues
5,315
2,739
4,938
4,158
846
(41
)
17,955
Policyholder benefits
285
35
3,010
3,404
—
—
6,734
Interest credited to policyholder account balances
1,916
1,147
342
320
—
—
3,725
Amortization of deferred policy acquisition costs
523
80
410
7
—
—
1,020
Non-deferrable insurance commissions
351
123
72
20
2
—
568
Advisory fee expenses
141
124
1
—
—
—
266
General operating expenses
426
447
656
73
384
(2
)
1,984
Interest expense
—
—
—
—
535
(51
)
484
Total benefits and expenses
3,642
1,956
4,491
3,824
921
(53
)
14,781
Noncontrolling interests
—
—
—
—
(320
)
—
(320
)
Adjusted pre-tax operating income (loss)
$
1,673
$
783
$
447
$
334
$
(395
)
$
12
$
2,854
(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 December 31,
Twelve Months Ended December 31,
(in millions)
2023
2022
2023
2022
Individual Retirement
Spread income
$
715
$
574
$
2,694
$
2,027
Fee income
288
283
1,134
1,192
Total Individual Retirement
1,003
857
3,828
3,219
Group Retirement
Spread income
193
210
828
867
Fee income
181
169
715
720
Total Group Retirement
374
379
1,543
1,587
Life Insurance
Underwriting margin
341
430
1,442
1,561
Total Life Insurance
341
430
1,442
1,561
Institutional Markets
Spread income
86
51
355
285
Fee income
16
16
64
63
Underwriting margin
20
17
71
77
Total Institutional Markets
122
84
490
425
Total
Spread income
994
835
3,877
3,179
Fee income
485
468
1,913
1,975
Underwriting margin
361
447
1,513
1,638
Total
$
1,840
$
1,750
$
7,303
$
6,792
The following table presents Life Insurance underwriting margin:
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions)
2023
2022
2023
2022
Premiums
$
459
$
582
$
1,776
$
1,864
Policy fees
371
397
1,488
1,564
Net investment income
325
376
1,282
1,389
Other income
9
27
93
121
Policyholder benefits
(736
)
(866
)
(2,838
)
(3,010
)
Interest credited to policyholder account balances
(87
)
(86
)
(340
)
(342
)
Less: Impact of annual actuarial assumption update
—
—
(19
)
(25
)
Underwriting margin
$
341
$
430
$
1,442
$
1,561
The following table presents Institutional Markets spread income, fee income and underwriting margin:
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions)
2023
2022
2023
2022
Premiums
$
1,929
$
1,384
$
5,642
$
2,950
Net investment income
404
253
1,446
901
Policyholder benefits
(2,096
)
(1,508
)
(6,243
)
(3,352
)
Interest credited to policyholder account balances
(151
)
(78
)
(490
)
(213
)
Less: Impact of annual actuarial assumption update
—
—
—
(1
)
Spread income(1)
$
86
$
51
$
355
$
285
SVW fees
16
16
64
63
Fee income
$
16
$
16
$
64
$
63
Premiums
(8
)
(9
)
(35
)
(37
)
Policy fees (excluding SVW)
34
33
131
131
Net investment income
35
35
140
143
Other income
1
1
2
2
Policyholder benefits
(14
)
(16
)
(55
)
(52
)
Interest credited to policyholder account balances
(28
)
(27
)
(110
)
(107
)
Less: Impact of annual actuarial assumption update
—
—
(2
)
(3
)
Underwriting margin(2)
$
20
$
17
$
71
$
77
(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 the reconciliation of dividends to normalized distributions:
At Period End
December 31, 2023
December 31, 2022
(in millions)
Subsidiary dividends paid
$
2,027
$
1,821
Less: Non-recurring dividends
—
—
Tax sharing payments related to utilization of tax attributes
—
401
Normalized distributions
$
2,027
$
2,222
The following table presents Operating EPS:
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions, except per common share data)
2023
2022
2023
2022
GAAP Basis
Numerator for EPS
Net income (loss)
$
(1,331
)
$
(168
)
$
1,036
$
8,479
Less: Net income (loss) attributable to noncontrolling interests
(22
)
39
(68
)
320
Net income (loss) attributable to Corebridge common shareholders
$
(1,309
)
$
(207
)
$
1,104
$
8,159
Denominator for EPS
Weighted average common shares outstanding - basic(1)
633.0
648.7
643.3
646.1
Dilutive common shares(2)
—
—
1.9
1.3
Weighted average common shares outstanding - diluted
633.0
648.7
645.2
647.4
Income per common share attributable to Corebridge common shareholders
Common stock - basic
$
(2.07
)
$
(0.32
)
$
1.72
$
12.63
Common stock - diluted
$
(2.07
)
$
(0.32
)
$
1.71
$
12.60
Operating Basis
Adjusted after-tax operating income attributable to Corebridge shareholders
$
661
$
610
$
2,647
$
2,371
Weighted average common shares outstanding - diluted
635.3
653.1
645.2
647.4
Operating earnings per common share
$
1.04
$
0.93
$
4.10
$
3.66
(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
December 31, 2023
September 30, 2023
December 31, 2022
(in millions, except per share data)
Total Corebridge shareholders' equity (a)
$
11,766
$
8,366
$
9,380
Less: Accumulated other comprehensive income (AOCI)
(13,458
)
(19,294
)
(16,863
)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets
(2,332
)
(3,439
)
(2,806
)
Total adjusted book value (b)
$
22,892
$
24,221
$
23,437
Total common shares outstanding (c)(1)
621.7
633.5
645.0
Book value per common share (a/c)
$
18.93
$
13.21
$
14.54
Adjusted book value per common share (b/c)
$
36.82
$
38.23
$
36.34
(1)
Total common shares outstanding are presented net of treasury stock
The following table presents the reconciliation of Adjusted ROAE:
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions, unless otherwise noted)
2023
2022
2023
2022
Actual or annualized net income (loss) attributable to Corebridge shareholders (a)
$
(5,236
)
$
(828
)
$
1,104
$
8,159
Actual or annualized adjusted after-tax operating income attributable to Corebridge shareholders (b)
2,644
2,440
2,647
2,371
Average Corebridge Shareholders’ equity (c)
10,066
8,988
10,326
15,497
Less: Average AOCI
(16,376
)
(17,409
)
(15,773
)
(8,143
)
Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets
(2,886
)
(2,879
)
(2,702
)
(919
)
Average Adjusted Book Value (d)
$
23,556
$
23,518
$
23,397
$
22,721
Return on Average Equity (a/c)
(52.0
)%
(9.2
)%
10.7
%
52.6
%
Adjusted ROAE (b/d)
11.2
%
10.4
%
11.3
%
10.4
%
The following table presents a reconciliation of net investment income (net income basis) to net investment income (APTOI basis):
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions)
2023
2022
2023
2022
Net investment income (net income basis)
$
3,012
$
2,555
$
11,078
$
9,576
Net investment (income) on Fortitude Re funds withheld assets
(471
)
(274
)
(1,368
)
(891
)
Change in fair value of securities used to hedge guaranteed living benefits
(14
)
(16
)
(55
)
(56
)
Other adjustments
(6
)
(13
)
(28
)
(50
)
Derivative income recorded in net realized gains (losses)
47
55
212
179
Total adjustments
(444
)
(248
)
(1,239
)
(818
)
Net investment income (APTOI basis)(1)
$
2,568
$
2,307
$
9,839
$
8,758
(1)
Includes net investment income (loss) from Corporate and Other of $0 million and $84 million for the three months ended December 31, 2023 and December 31, 2022, respectively, as well as $92 million and $473 million for the twelve months ended December 31, 2023 and December 31, 2022, respectively
The following table presents the premiums and deposits:
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions)
2023
2022
2023
2022
Individual Retirement
Premiums
$
40
$
63
$
213
$
235
Deposits
5,245
3,764
17,971
14,900
Other(1)
(3
)
—
(13
)
(15
)
Premiums and deposits
5,282
3,827
18,171
15,120
Group Retirement
Premiums
4
3
20
19
Deposits
2,079
2,240
8,063
7,923
Premiums and deposits(2)(3)
2,083
2,243
8,083
7,942
Life Insurance
Premiums
459
582
1,776
1,864
Deposits
408
411
1,583
1,601
Other(1)
236
80
941
771
Premiums and deposits
1,103
1,073
4,300
4,236
Institutional Markets
Premiums
1,921
1,375
5,607
2,913
Deposits
75
169
3,695
1,382
Other(1)
8
7
31
30
Premiums and deposits
2,004
1,551
9,333
4,325
Total
Premiums
2,424
2,023
7,616
5,031
Deposits
7,807
6,584
31,312
25,806
Other(1)
241
87
959
786
Premiums and deposits
$
10,472
$
8,694
$
39,887
$
31,623
(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 $741 million and $973 million for the three months ended December 31, 2023 and December 31, 2022, respectively, as well as $3,245 million and $3,476 million for the twelve months ended December 31, 2023 and December 31, 2022, respectively
(3)
Excludes client deposits into advisory and brokerage accounts of $603 million and $414 million for the three months ended December 31, 2023 and December 31, 2022, respectively, as well as $2,381 million and $2,058 million for the twelve months ended December 31, 2023 and December 31, 2022, respectively
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213916518/en/
Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com Matt Ward (Media): media.contact@corebridgefinancial.com
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