Fourth Quarter
- Premiums and deposits1 of $10.5 billion, a 20% increase over
the prior year quarter
- Base spread income2 of $987 million, a 21% increase over the
prior year quarter
- Base yield2 rose 45 basis points over the prior year
quarter
- Net loss of $1.3 billion, or $2.07 per share
- Adjusted after-tax operating income1 of $661 million and
operating EPS1 of $1.04 per share
- Returned $1.1 billion to shareholders, including $252 million
of share repurchases and $876 million of quarterly and special
dividends
Full Year
- Premiums and deposits of $39.9 billion, a 26% increase over the
prior year
- Base spread income of $3.7 billion, a 30% increase over the
prior year
- Base yield improved 61 basis points over the prior year
- Net income of $1.1 billion, or $1.71 per share
- Adjusted after-tax operating income of $2.6 billion and
operating EPS of $4.10 per share
- Insurance companies distributed $2.0 billion in 2023 while
maintaining Life Fleet RBC Ratio2 above 400%
- Returned $2.2 billion to shareholders resulting in an 84%
payout ratio
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
- Holding company liquidity of $1.6 billion as of December 31,
2023, exceeding the next 12-month needs
- Financial leverage ratio of 28.3%
- Life Fleet RBC Ratio remains above 400%
- Returned $1.1 billion to shareholders in the fourth quarter
comprised of $252 million of share repurchases, $145 million of
dividends and a $731 million special dividend
- Returned $2.2 billion to shareholders in 2023 comprised of $498
million of share repurchases, $589 million of dividends and $1.1
billion in special dividends
- Declared quarterly dividend of $0.23 per share of common stock
on February 14, 2024, payable on March 29, 2024, to shareholders of
record at the close of business on March 15, 2024
BUSINESS RESULTS
Individual
Retirement
Three Months Ended December
31,
($ 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
- Premiums and deposits increased $1.5 billion, or 38%, over the
prior year quarter driven by growth of fixed annuity and fixed
index annuity deposits, partially offset by lower variable annuity
deposits. Net flows increased $562 million, or 268%, over the
fourth quarter of 2022 primarily from strong fixed annuity
flows
- Base net investment spread2 of 2.51% for the fourth quarter of
2023 expanded 37 basis points over the prior year quarter and 4
basis points over the sequential quarter
- APTOI increased $163 million, or 35%, over the prior year
quarter primarily due to higher base spread income and reduced
expenses
Group
Retirement
Three Months Ended December
31,
($ 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
- Premiums and deposits decreased $160 million, or 7%, 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 and fixed index annuity deposits
- Base net investment spread of 1.44% for the fourth quarter of
2023 compressed 15 basis points from the prior year quarter and 8
basis points from the sequential quarter
- APTOI increased $7 million, or 4%, over the prior year quarter
primarily due to higher fee income and reduced expenses, partially
offset by lower base spread income
Life
Insurance
Three Months Ended December
31,
($ 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
- APTOI decreased $63 million, or 44%, primarily due to
unfavorable Universal Life mortality arising from a higher
frequency of smaller claims as well as net non-recurring items
which favorably impacted results in the prior year quarter
- Universal Life full year mortality experience was in line with
expectations
- Sale of Laya Healthcare closed on October 31, 2023 for gross
proceeds of $731 million
Institutional
Markets
Three Months Ended December
31,
($ 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
- Premiums and deposits increased $453 million, or 29%, over the
prior year quarter driven by higher pension risk transfer
transactions, which were $1.9 billion for the fourth quarter of
2023 compared to $1.3 billion for the fourth quarter of 2022
- APTOI increased $33 million, or 55%, over the prior year
quarter primarily due to higher base spread income
Corporate and
Other
Three Months Ended December
31,
($ 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
)
- APTOI decreased $24 million from the prior year quarter
primarily due to non-recurring gains on the sale of legacy
investments which favorably impacted results in 4Q22, partially
offset by lower expenses in 4Q23
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 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:
- 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 real estate market, uncertainty regarding a
potential U.S. federal government shutdown, and geopolitical
tensions, including the ongoing armed conflicts between Ukraine and
Russia and in the Middle East;
- unpredictability of the amount and timing of insurance
liability claims;
- uncertainty and unpredictability related to our reinsurance
agreements with Fortitude Reinsurance Company Ltd and its
performance of its obligations under these agreements;
- 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
ability to access funds from our subsidiaries, our ability to
obtain financing on favorable terms or at all, our ability to incur
indebtedness, our potential inability to refinance all or a portion
of our existing indebtedness, the illiquidity of some of our
investments, a downgrade in the insurer financial strength ratings
of our insurance company subsidiaries or our credit ratings, and
non-performance by counterparties;
- 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 availability of our critical technology systems, our
risk management policies becoming ineffective, significant legal,
governmental or regulatory proceedings, or our business strategy
becoming ineffective;
- our ability to 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;
- 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;
- the intense competition we face in each of our business lines
and the technological changes, including the use of artificial
intelligence, that may present new and intensified challenges to
our business;
- our inability to attract and retain key employees and highly
skilled people needed to support our business;
- our arrangements with Blackstone ISG-1 Advisors L.L.C
(“Blackstone IM”), BlackRock Financial Management, Inc. 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 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 U.S.
consolidated income federal income tax return for a five-year
period, challenges related to being a public company and
limitations on our ability to use deferred tax assets to offset
future taxable income; 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, 2023 (which will be filed with the Securities and
Exchange Commission (“SEC”)) as well as our Quarterly Reports on
Form 10-Q.
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:
- 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 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
- 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.
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
SVW 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, affordable
housing 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 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
Corebridge Financial (NYSE:CRBG)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Corebridge Financial (NYSE:CRBG)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024