Corebridge Financial : First Quarter 2025 Presentation

Published: 2025-05-05 22:03:25 ET CRBG

Published on 05/05/2025 at 22:03

Financial Results

Presentation

May 6, 2025

icon tbd

Diversified business model

Strong balance sheet

Disciplined execution

Broad and diverse product suite drives resilient new business franchise

Products serve range of customer needs with $9.3 billion of premiums and deposits1; well-positioned across market conditions

Core sources of income2grew 1% year over year, with increases in fee income and underwriting margin

New RILA gaining traction with expanded distribution footprint and launch in Group Retirement; California went live in April

General account grew 8% year over year due to strong new business growth

Robust balance sheet designed to withstand market volatility

Life Fleet RBC ratio3above target; strong capital and liquidity even with current market volatility

$2.4 billion of holding company cash with additional $3.0 billion of revolving credit facilities

Diversified, high-quality investment portfolio with average credit rating of A; 95% of fixed income assets rated investment grade

We continue to generate significant shareholder value

Delivered payout ratio4of 70%; maintain target of 60-65% for full year

Bermuda continues to support financial flexibility and earnings growth; ceded over $14 billion of statutory reserves to date

Operating EPS1

+5% year over year

Adjusted ROAE1

-10 bps year over year

Capital return to shareholders

Increase earnings growth

Run rate EPS

(10-15% long-term p.a growth)

Enhance profitability

Run rate ROAE

(12-14% target)

Maintain balance sheet strength

Life Fleet RBC Ratio

(>400% target)

Drive shareholder value

Payout Ratio

(60-65% target)

Through varied markets...

Volatile equity and bond markets

...Corebridge consistently delivers

Robust Life Fleet RBC ratio1

Consistent cash generation2

($B)

480%

433%

(425-470% target)

389%

402%

(375-400% target)

447%

411%

428%

426%

(>400% target)

1.7

2.1

2.2

2.0

2.2

2.3

2017 2018 2019 2020 2021 2022 2023 2024

1Q24

Investments Reinsurance

Notable items

APTOI Operating ($M) EPS($)

78 0.10

(30) (0.04)

48 0.06

Alternative investments returns versus long-term return expectations

(135)

(0.17)

1Q25

Investments Reinsurance

Notable items

APTOI Operating ($M) EPS ($)

20 0.03

(12) (0.02)

8 0.01

Alternative investments returns versus long-term return expectations

(45)

(0.06)

Adjusted return on average equity

1Q24

1Q25

Operating EPS ($)

1Q24

1Q25

11.9%

10.5%

1.3%

11.8%

1.03

1.10

0.13

1.16

-80 bps excluding VII & notable items

-2%

excluding VII & notable items

Adjusted pre-tax operating income1($M)

1Q24

1Q25

837

718

835

810

-10%

excluding VII & notable items

Core sources of income2,3($M)

Spread income1,2,3($M)

Fee income1($M)

Underwriting margin1,2,3($M)

+1%

excluding VII, notable items & international life business

1,847 1,886

1,794

1,812

-3%

excluding VII & notable items

+1% +12%

excluding VII, notable items & international life business

935

1,016

1,019 1,022

513 518

518

513

341

283

(1)

315 346

1Q24

1Q25

1Q24

1Q25

1Q24

1Q25

1Q24

1Q25

Insurance company distributions ($M)

500

550

600

1Q24 2Q24 3Q24 4Q24 1Q25

Capital return by quarter1($M)

Capital and liquidity highlights

Strong cash generation with $600 million distribution to holding company

Returned $454 million of capital to shareholders, up 18% year over year

Represents 70% payout ratio

$2.4 billion of holding company liquidity as of March 31, 2025;

$1.4 billion cash on hand net of April 2025 debt maturity

Cash on hand exceeds next twelve months needs

Increased holding company revolving credit facilities by

$0.5 billion to a total of $3.0 billion

No significant debt maturities until 2027

321

133

129

133

139

143

515

243

436

200

398

1Q24 2Q24 3Q24 4Q24 1Q25

Quarterly dividend

Open market share buyback

Direct share buyback

Appendix

Sources of income ($M)

709

307

308

1,020 1,006

671

excluding VII & notable items

First quarter highlights

Sources of income down slightly year over year as Fed rate actions and our hedging activities reduced spread income by approximately $50 million, partially offset by business growth

Premiums and deposits reflects another very good quarter as broad product suite serves retirement needs of customers as demand evolves

General account net inflows of $1.1 billion demonstrate value of origination capabilities, product portfolio and distribution network

1Q24 1Q25

Other key metrics

1Q24

Premiums and deposits ($M) 4,861

1Q25

4,701

Change

-3%

Fixed annuities

2,612

1,999

-23%

Fixed index annuities and registered index-linked annuities

1,883

2,299

+22%

Variable annuities

366

403

+10%

Assets under management and administration ($B)

153

160

+5%

General account

103

114

+11%

Separate account

-7%

Adjusted pre-tax operating income ($M)

554

-10%

excluding VII & notable items

527

618

622

1Q24

1Q25

Sources of income ($M)

-6%

excluding VII & notable items

190

195

199

168

390 387

First quarter highlights

Business continues to transition from spread to capital-light, fee-based revenue stream

Base spread income excluding notable items decreased 14% year over year given ongoing shift in customer base and resulting net outflows

Fee income increased 3% year over year driven by higher equity markets and growing advisory and brokerage business

Premiums and deposits slightly lower year over year, but periodic deposits remain steady driven by sustained customer demand; launched RILA, generating approximately $50

1Q24

1Q25

million of sales

Net outflows returned to levels observed in first half of 2024

Other key metrics

1Q24

Premiums and deposits ($M) 2,054

1Q25

1,824

Change

-11%

Excluding plan acquisitions

2,019

1,806

-11%

Assets under management and administration ($B)

126

121

-4%

In-plan

-6%

Out-of-plan

-3%

Advisory and brokerage

+5%

Adjusted pre-tax operating income ($M)

-13%

excluding VII & notable items

171

199

200 195

1Q24

1Q25

297

325

265

+11%

excluding VII, notable items & int'l life

(1)

321

Sources of income ($M)

First quarter highlights

Business remains a mainstay for Corebridge, providing stability during periods of market volatility

Underwriting margin excluding VII, notable items and international life increased 11% year over year driven by more favorable mortality experience

New business sales reflect strong product positioning and success of data-driven practices; 10th consecutive quarter where sales outpaced market1

1Q24 1Q25

Adjusted pre-tax operating income ($M)

+23%

excluding VII, notable items & int'l life

104

(1)

(6)

108

Other key metrics2

1Q24 1Q25 Change

Premiums and deposits ($M) 854 856 -%

1Q24

1Q25

New business sales3($M)

+4%

Term / Traditional

+4%

Universal life and other

+4%

In force4($B)

998

999

Term / Traditional

872

Universal life and other

126

127

+1%

Sources of income ($M)

+2%

excluding VII & notable items

(2)

108

140

1Q24

168

1Q25

First quarter highlights

Reserves increased 17% year over year largely driven by GIC issuances and PRT transactions

Total sources of income excluding notable items increased 33% year over year supported by reserve growth

Continue to grow GIC program as disciplined, consistent issuer

Strong execution and continued demand for global PRT positions business for continued growth

Base spread income

Adjusted pre-tax operating income ($M)

137

Other key metrics

1Q24 1Q25 Change

112

Premiums and deposits ($M) 2,586 1,942 -25%

-1%

excluding VII & notable items

(2)

114

Pension risk transfer 1,767 469 -73%

Pension risk transfer

+7%

Guaranteed investments contracts

+48%

Other

+5%

Guaranteed investments contracts 600 1,325 +121%

100

Other1

219

148

-32%

Reserves ($B)2

+17%

1Q24

1Q25

3% 2%2% 4%

15%

35%

$223.1B

1,2

10%

97%

Fixed income or short-term investments

95%

Fixed maturities rated investment grade

Average credit quality

Liability driven investment strategy supported by disciplined asset-liability management process

Diversified across asset class, sector, geography and issuer / borrower

Portfolio defensively positioned in event of downturn in credit cycle

Private securities contain negotiated, protective financial covenants

Asset origination model enhances competitiveness while expanding capabilities and scale benefits

($ in millions, except per share data)

1Q25

Business segment

Notable items

Investments All other

Alternative investments returns versus long-term return expectations

Total adjustments

Individual Retirement

(26)

(16)

Group Retirement

Life Insurance

(6)

(4)

Institutional Markets

(15)

(11)

Corporate and Other

(12)

$(0.05)

EPS impact $0.03 $(0.02) $(0.06)

1Q24

Business segment

Notable items

Investments All other

Alternative investments returns versus long-term return expectations

Total adjustments

Individual Retirement

(46)

(1)

Group Retirement

(27)

(19)

Life Insurance

(30)

(11)

(33)

Institutional Markets

(51)

(34)

Corporate and Other

$(0.11)

EPS impact $0.10 $(0.04) $(0.17)

Modeling assumptions for 2025

Total company

Alternative investments returns Expect to be below long-term return assumption of 8-9%

Updated in 1Q25

Base portfolio income

Approximately 2 bps increase / decrease on average assets expected for every 25 bps increase / decrease in SOFR; impact of each rate action should largely earn in over two quarters given frequency of resets of floating rate positions

Fee income1Approximately $85M increase / decrease for every 10% immediate change in S&P 500 index

first quarter

General operating expenses Highest in first quarter, then trending lower and increasing again in fourth quarter; Rule of 65 impacts Effective tax rate Long-term assumption of 20-21% before discrete items

Individual Retirement

Maturity profile

Large blocks of fixed and fixed index annuities exiting surrender charge period in first, third and fourth quarters; positive flows expected in the general account

Deferred acquisition costs Higher run rate driven by growth and higher interest rates

Commissions Higher run rate driven by new business volume and equity market performance

Group Retirement

Withdrawals Seasonally higher in fourth quarter due to required minimum distributions

Life Insurance

Mortality Highest in first quarter, then trending lower and increasing again in fourth quarter

Corporate and Other

Interest expense Highest in first quarter due to pre-funding of upcoming debt maturities

Explanation of footnotes

This presentation 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 are included in the Appendix

Page 3

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Excludes notable items and international life businesses

This presentation refers to certain key operating metrics and key terms. More information on key operating metrics and key terms are included in the Appendix

Percentage of adjusted after-tax operating income returned to shareholders; includes common stockholder dividends and share repurchases

2018 RBC ratio impacted by passage of Tax Cuts and Jobs Act of 2017 (TCJA)

Includes normalized distributions to holding company

2 This presentation refers to certain key operating metrics and key terms. More information on key operating metrics and key terms are included in the Appendix

1 This presentation refers to certain key operating metrics and key terms. More information on key operating metrics and key terms are included in the Appendix

2 1Q24 includes notable items of $67M in spread income and ($19M) in underwriting margin

3 1Q25 includes notable items of $18M in spread income and $2 in underwriting margin

1 Dividends reflects payment date, not declaration date

1 Source: LIMRA's 4Q24 industry survey results, inclusive of term life, index universal life, universal life and whole life products

2 Excludes international life business

Continuous payment premium equivalent (CPPE) basis. Included periodic premiums from new business expected to be collected over a one year period and 10 percent of unscheduled and single premiums from new and existing policyholders

4 Includes direct and assumed business

1 Includes corporate and bank-owned life insurance, high net worth, structured settlements and stable value wraps

2 Pension risk transfer reserves at original discount rate, excluding deferred profit liability

1 GAAP carrying value

Insurance operating businesses. Excludes funds withheld assets, allowance for credit losses on mortgage loans, policy loans, consolidated investment entities as well as eliminations primarily between the consolidated investment entities and the insurance operating companies

1 Combination of fee income and advisory fee expense

Cautionary statement regarding forward-looking information, non-GAAP financial measures, key operating metrics and key terms

Certain statements in this presentation 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," "is optimistic," "targets," "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 in such forward-looking statements, including those listed in the Appendix hereto.

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 Securities and Exchange Commission ("SEC").

Important factors that could cause actual results to differ, possibly materially, from expectations or estimates

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, including an increase in the likelihood of an economic slowdown or recession, changes in market conditions, trade disputes with other countries, including the effect of sanctions and trade restrictions, such as tariffs and trade barriers imposed by the U.S. government and any countermeasures by other governments in response to such tariffs, weakening in capital markets in the U.S and globally, volatility in equity markets, inflationary pressures, the rise of pressures on the commercial real estate market, and geopolitical tensions, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East;

the unpredictability of the amount and timing of insurance liability claims;

unavailable, uneconomical or inadequate reinsurance or recaptures of reinsured liabilities;

uncertainty and unpredictability related to our reinsurance agreements with Fortitude Reinsurance Company Ltd. ("Fortitude Re") and its performance of its obligations under these agreements;

our limited ability to access funds from our subsidiaries;

our ability to incur indebtedness, our potential inability to refinance all or a portion of our indebtedness or our ability to obtain additional financing on favorable terms or at all;

our ability to maintain sufficient eligible collateral to support business and funding strategies requiring collateralization;

our inability to generate cash to meet our needs due to the illiquidity of some of our investments;

the inaccuracy of the methodologies, estimations and assumptions underlying our valuation of investments and derivatives;

a downgrade in our Insurer Financial Strength ("IFS") ratings or credit ratings;

Important factors that could cause actual results to differ, possibly materially, from expectations or estimates

(continued from prior page)

exposure to credit risk due to non-performance or defaults by our counterparties or our use of derivative instruments to hedge market risks associated with our liabilities;

our ability to adequately assess risks and estimate losses related to the pricing of our products;

the failure of third parties that we rely upon to provide and adequately perform certain business, operations, investment advisory, functional support and administrative services on our behalf;

the impact of risks associated with our arrangement with Blackstone ISG-I Advisors LLC ("Blackstone IM"), BlackRock Financial Management, Inc. ("BlackRock") or any other asset manager we retain, including their historical performance not being indicative of the future results of our investment portfolio and the exclusivity of certain arrangements with Blackstone IM;

our inability to maintain the availability of critical technology systems and the confidentiality of our data, including challenges associated with a variety of privacy and information security laws;

the ineffectiveness of our risk management policies and procedures;

significant legal, governmental or regulatory proceedings;

the intense competition we face in each of our business lines and the technological changes, including the use of artificial intelligence ("AI"), that may present new and intensified challenges to our business;

catastrophes, including those associated with climate change and pandemics;

business or asset acquisitions and dispositions that may expose us to certain risks;

our ability to protect our intellectual property;

our ability to operate efficiently and compete effectively in a heavily regulated industry in light of new domestic or international laws and regulations or new interpretations of current laws and regulations;

impact on sales of our products and taxation of our operations due to changes in U.S. federal income or other tax laws or the interpretation of tax laws;

the ineffectiveness of our productivity improvement initiatives in yielding our expected expense reductions and improvements in operational and organizational efficiency;

differences between actual experience and the estimates used in the preparation of financial statements and modeled results used in various areas of our business;

our inability to attract and retain key employees and highly skilled people needed to support our business;

our relationships with AIG, Nippon and Blackstone and conflicts of interests arising due to such relationships;

the indemnification obligations we have to AIG;

potentially higher U.S. federal income taxes due to our inability to file a single U.S. consolidated federal income tax return for five years following our initial public offering ("IPO") and our separation from AIG causing an "ownership change" for U.S. federal income tax purposes caused by our separation from AIG;

risks associated with the Tax Matters Agreement with AIG and our potential liability for U.S. income taxes of the entire AIG Consolidated Tax Group for all taxable years or portions thereof in which we (or our subsidiaries) were members of such group;

the risk that anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders;

challenges related to compliance with applicable laws incident to being a public company, which is expensive and time-consuming; and

other factors discussed in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, as well as our Quarterly Reports on Form 10-Q.

Throughout this presentation, 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 (loss) before income tax expense (benefit). 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 modified coinsurance ("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 those 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:

reclassifications of disproportionate tax effects from AOCI, 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 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. We believe that presenting net investment income on an APTOI basis is useful for gaining an understanding of the main drivers of 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.

Key operating metrics and key terms

Assets Under Management and Administration

Assets Under Management ("AUM") include assets in the general and separate accounts of our subsidiaries that support liabilities and surplus related to our life and annuity insurance products.

Assets Under Administration ("AUA") include Group Retirement mutual fund assets and other third-party assets that we sell or administer and the notional value of Stable Value Wrap ("SVW") contracts.

Assets Under Management and Administration ("AUMA") is the cumulative amount of AUM and AUA.

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.

Core sources of income means the sum of base spread income, fee income and underwriting margin, excluding variable investment income, in our Individual Retirement, Group Retirement, Life Insurance and Institutional Markets segments.

Key operating metrics and key terms

(continued from prior page)

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 from make-whole payments on 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.

Pre-tax income to adjusted pre-tax operating income & after-tax income to adjusted after-tax operating income

Three Months Ended March 31, 2025 2024

Pre-tax

(in millions)

(Benefit) Charge

controlling Interests

After Tax

Pre-tax

(Benefit) Charge

controlling

After Tax

Pre-tax income (loss)/net income (loss), including noncontrolling interests

$ (862)

$ (205)

$ - $ (657)

$ 1,016

$ 189

$ - $ 827

Noncontrolling interests

(7) (7)

51 51

Pre-tax income (loss)/net income (loss) attributable to Corebridge

(862)

(205)

(7)

(664)

1,016

189

878

Fortitude Re related items

Net investment (income) on Fortitude Re funds withheld assets

(331)

(71)

(260)

(332)

(71)

(261)

Net realized (gains) losses on Fortitude Re funds withheld assets

(4)

(1)

(3)

164

129

Net realized (gains) losses on Fortitude Re funds withheld embedded derivative

596

127

469

(22)

(5)

(17)

Subtotal Fortitude Re related items

261

206

(190)

(41)

(149)

Other reconciling Items

Reclassification of disproportionate tax effects from AOCI and other tax adjustments

(21)

(26)

Deferred income tax valuation allowance (releases) charges

(8)

(17)

Changes in fair value of market risk benefits, net

385

304

(369)

(77)

(292)

Changes in fair value of securities used to hedge guaranteed living benefits

(1)

Changes in benefit reserves related to net realized gains (losses)

(3)

(1)

(2)

Net realized (gains) losses(1)

905

190

715

222

175

Separation costs

Restructuring and other costs

Non-recurring costs related to regulatory or accounting changes

Net (gain) on divestiture

(5)

(1)

(4)

Noncontrolling interests

(7)

(51)

Subtotal Non-Fortitude Re reconciling items

1,411

311

1,107

(51)

(41)

Total adjustments

1,672

366

1,313

(179)

(40)

(51)

(190)

Adjusted pre-tax operating income/Adjusted after-tax operating income attributable to Corebridge

$ 810

$ 161

$ -

$ 649

$ 837

$ 149

$ -

$ 688

Total Tax

Non-

Total Tax

Non-Interests

(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.

Adjusted pre-tax operating income by segment

Three Months Ended March 31, 2024

Three Months Ended March 31, 2025

(in millions) Individual Retirement Group Retirement Life Insurance Institutional Markets Corporate & Other Eliminations Total Corebridge

Premiums

340

500

18 $

889

Policy fees

198

108

364

720

Net investment income

1,486

485

336

589

(4)

2,908

Net realized gains (losses)(1)

Advisory fee and other income

110

206

Total adjusted revenues

1,821

684

1,041

1,140

(4)

4,736

Policyholder benefits

636

742

1,426

Interest credited to policyholder account balances

800

296

230

1,406

Amortization of deferred policy acquisition costs

164

275

Non-deferrable insurance commissions

106

156

Advisory fee expenses

General operating expenses

128

103

118

(1)

446

Interest expense

146

(6)

140

Total benefits and expenses

1,267

489

933

1,003

234

(7)

3,919

Noncontrolling interests

(7)

Adjusted pre-tax operating income (loss)

554

195

108

137

(187) $

810

Premiums

434

1,796

19 $

2,295

Policy fees

191

107

368

714

Net investment income

1,339

495

326

487

(10)

(8)

2,629

Net realized gains (losses)(1)

(8)

Advisory fee and other income

116

223

Total adjusted revenues

1,687

690

1,128

2,332

(8)

5,853

Policyholder benefits

748

2,023

2,810

Interest credited to policyholder account balances

639

298

169

1,189

Amortization of deferred policy acquisition costs

149

267

Non-deferrable insurance commissions

143

Advisory fee expenses

General operating expenses

116

106

130

458

Interest expense

137

(5)

132

Total benefits and expenses

1,065

490

1,074

2,220

223

(5)

5,067

Noncontrolling interests

Adjusted pre-tax operating income (loss)

622

200

112

(148) $

(3)

837

Three Months Ended March 31,

(in millions)

2025

2024

Individual Retirement

Spread income

$ 698

$ 713

Fee income

308

307

Total Individual Retirement

1,006

1,020

Group Retirement

Spread income

192

200

Fee income

195

190

Total Group Retirement

387

390

Life Insurance

Underwriting margin

325

297

Total Life Insurance

325

297

Institutional Markets

Spread income

132

106

Fee income

Underwriting margin

Total Institutional Markets

168

140

Total

Spread income

1,022

1,019

Fee income

518

513

Underwriting margin

346

315

Total

$ 1,886

$ 1,847

Life Insurance

Three Months Ended March 31,

(in millions)

2025

2024

Premiums

$ 340

$ 434

Policy fees

364

368

Net investment income

336

326

Other income

Policyholder benefits

(636)

(748)

Interest credited to policyholder account balances

(80)

(83)

Underwriting margin

$ 325

$ 297

Premiums

$ 508

$ 1,805

Net investment income

551

449

Policyholder benefits

(725)

(2,006)

Interest credited to policyholder account balances

(202)

(142)

Spread income(1)

$ 132

$ 106

SVW fees

Fee income

$ 15

$ 16

Premiums

(8)

(9)

Policy fees (excluding SVW)

Net investment income

Other income

Policyholder benefits

(17)

Interest credited to policyholder account balances

(28)

(27)

Underwriting margin(2)

$ 21

$ 18

Institutional Markets

Represents spread income from Pension Risk Transfer, Guaranteed Investment Contracts and Structured Settlement products

Represents underwriting margin from Corporate Markets products, including corporate-and bank-owned life insurance private placement variable universal life insurance and private placement variable annuity 27

products

Operating earnings per share

Three Months Ended March 31,

(in millions, except per common share data)

2025

2024

GAAP Basis

Numerator for EPS

Net income (loss)

$ (657)

$ 827

Less: Net income (loss) attributable to noncontrolling interests

(51)

Net income (loss) attributable to Corebridge common shareholders

$ (664)

$ 878

Denominator for EPS

Weighted average common shares outstanding - basic(1)

558.0

624.0

Dilutive common shares(2)

0.9

Weighted average common shares outstanding - diluted

558.0

624.9

Income per common share attributable to Corebridge common shareholders

Common stock - basic

$ (1.19)

$ 1.41

Common stock - diluted

$ (1.19)

$ 1.41

Operating Basis

Adjusted after-tax operating income attributable to Corebridge common shareholders

$ 649

$ 688

Weighted average common shares outstanding - diluted

559.4

624.9

Operating earnings per common share

$ 1.16

$ 1.10

Common Shares Outstanding

Common shares outstanding, beginning of period

561.5

621.7

Share repurchases

(10.0)

(9.5)

Newly issued shares

1.6

3.2

Common shares outstanding, end of period

553.1

615.4

Includes vested shares under our share-based employee compensation plans

Potential dilutive common shares include our share-based employee compensation plans 28

Adjusted return on average equity

Three Months Ended March 31,

(in millions, unless otherwise noted)

2025

2024

Actual or annualized net income (loss) attributable to Corebridge shareholders (a)

$ (2,656)

$ 3,512

Actual or annualized adjusted after-tax operating income attributable to Corebridge shareholders (b)

2,596

2,752

Average Corebridge Shareholders' equity (c)

11,721

11,671

Less: Average AOCI

(12,865)

(13,799)

Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

(2,676)

(2,415)

Average Adjusted Book Value (d)

$ 21,910

$ 23,055

Return on Average Equity (a/c)

(22.7)%

30.1 %

Adjusted ROAE (b/d)

11.8 %

11.9 %

Net investment income (APTOI basis)

Three Months Ended March 31,

(in millions)

2025

2024

Net investment income (net income basis)

$ 3,189

$ 2,924

Net investment (income) on Fortitude Re funds withheld assets

(331)

(332)

Change in fair value of securities used to hedge guaranteed living benefits

(14)

(18)

Other adjustments

(8)

(6)

Derivative income recorded in net realized gains (losses)

Total adjustments

(281)

(295)

Net investment income (APTOI basis)

$ 2,908

$ 2,629

Normalized distributions

Twelve Months Ended December 31,

(in millions)

2017

2018

2019

2020

2021

2022

2023

2024

Subsidiary dividends paid

$ 2,409

$ 2,488

$ 1,535

$ 540

$ 1,564

$ 1,821

$ 2,027

$ 2,200

Less: Non-recurring dividends

(890)

(1,113)

(400)

600

(295)

Tax sharing payments related to utilization of tax attributes

782

370

954

1026

902

401

Normalized distributions

$ 2,301

$ 1,745

$ 2,089

$ 2,166

$ 2,171

$ 2,222

$ 2,027

$ 2,200

Notable items and alternative investment returns versus long-term return expectations

Three Months Ended March 31,

(in millions)

2025

2024

Individual Retirement:

Alternative investments returns versus long-term return expectations

$ (26)

$ (46)

Investments

Total adjustments

$ (16)

$ (1)

Group Retirement:

Alternative investments returns versus long-term return expectations

$ 2

$ (27)

Investments

Total adjustments

$ 6

$ (19)

Life Insurance:

Alternative investments returns versus long-term return expectations

$ (6)

$ (11)

Investments

Reinsurance

(30)

Total adjustments

$ (4)

$ (33)

Institutional Markets:

Alternative investments returns versus long-term return expectations

$ (15)

$ (51)

Investments

Total adjustments

$ (11)

$ (34)

Total Corebridge:

Alternative investments returns versus long-term return expectations

(45)

(135)

Investments

Reinsurance

(30)

Corporate & other

(12)

Total adjustments

$ (37)

$ (87)

Disclaimer

Corebridge Financial Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2025 at 01:53 UTC.