Loading...
01/10 16:02
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company demonstrates strong financial performance and strategic growth plans, including a significant reinsurance transaction and a focus on annuity products for an aging population. Despite some unclear management responses, the Q&A session reveals robust demand for annuities and effective risk management strategies. The company's commitment to EPS growth and capital management, along with strategic investments in its adviser force, supports a positive outlook. These factors, coupled with continued growth in institutional markets and a focus on expense efficiency, indicate a likely positive stock price movement.
Total premiums and deposits $12.3 billion, reflecting ongoing strength in Individual Retirement. Sales of RILA product were nearly $800 million in the third quarter and have topped $1.7 billion year-to-date. General account net inflows were $1.4 billion, up 27%, supporting general account growth of 6% year-over-year.
Adjusted pretax operating income $678 million, excluding VII and notable items. Operating earnings per share were $0.99. Adjusting alternative investment returns to long-term expectations and notable items, run rate operating EPS was $1.21, representing a 6% year-over-year increase. Adjusted run rate ROE was 12.9%, up 70 basis points versus the prior year.
Fee income Up 7% year-over-year, primarily from favorable market conditions.
Spread income Down 1% year-over-year, despite 100 basis points of Fed rate cuts in 2024, as business growth paired with asset optimization actions mitigated the headwinds.
Insurance company distributions Totaled more than $1.3 billion in the quarter, including approximately $700 million of proceeds from the VA reinsurance transaction.
Capital return $509 million in the quarter, including $381 million of share repurchases. Since September 30, over $370 million has been returned to shareholders.
Individual Retirement adjusted pretax operating income Declined by 9% year-over-year, driven by higher DAC amortization and commissions, reflecting growth in the business. Net flows were up 13% year-over-year, mostly driven by higher index annuity and RILA sales.
Group Retirement adjusted pretax operating income Increased 1% year-over-year as higher fee income offset lower base spread income. Fee income now accounts for approximately 60% of Group Retirement's core revenue.
Life Insurance adjusted pretax operating income Down 8% year-over-year, largely due to onetime costs related to systems conversion and higher expenses. Mortality trends were favorable, demonstrating strong underwriting on the block.
Institutional Markets adjusted pretax operating income Up 3% year-over-year. Total reserves grew by $8 billion or 19%. Core sources of income were up 5% year-over-year.
RILA Product Sales: Sales of RILA product reached nearly $800 million in Q3 and have topped $1.7 billion year-to-date. Regulatory approval was received to sell RILA in New York state, with plans to launch by year-end.
Digital Senior Life Products: Fully digital senior life products grew by 19% year-over-year.
Institutional Markets Growth: Strongest sales quarter since IPO in PRT and GIC, with GIC issuances exceeding $1 billion for the sixth consecutive quarter. Total reserves grew by $8 billion or 19%.
New York Annuity Market Entry: Regulatory approval to sell RILA in New York state, one of the largest annuity markets.
VA Reinsurance Transaction: Completed a transformative VA reinsurance transaction, simplifying the company, reducing risk, and freeing up significant capital.
Early Retirement Program: Completed a voluntary early retirement program to create capacity for digital investments and operational modernization.
Capital Return: Returned over $1.4 billion to shareholders year-to-date through buybacks and dividends, with a payout ratio of 80%.
Bermuda Strategy Expansion: Expanded Bermuda strategy with $18 billion of reserves ceded since inception.
Focus on High-Quality Investments: Maintained a 95% investment-grade portfolio, focusing on high-quality assets with collateralized cash flows and credit enhancements.
CFO Transition: The departure of CFO Elias Habayeb in April 2026 could pose risks related to leadership continuity and financial oversight during the transition period. Although a 6-month transition period is planned, there is potential for disruption in strategic execution and financial planning.
Market Conditions: Interest rate fluctuations, including the 100 basis points of Fed rate cuts in 2024, have impacted spread income and could continue to affect financial performance. Additionally, tight credit spreads and potential pressure in the syndicated loan market present risks to investment returns.
Regulatory and Product Launch Risks: While regulatory approval for the RILA product in New York is a positive development, delays or challenges in launching the product by year-end could impact revenue growth in a key market.
Operational Efficiency: The company is undergoing modernization efforts, including a voluntary early retirement program and digital upskilling. These initiatives carry execution risks, such as potential short-term disruptions or failure to achieve desired efficiency gains.
Alternative Investment Returns: Alternative investment returns have been below long-term expectations, particularly in real estate equity. This underperformance could continue to weigh on overall earnings.
Expense Management: Higher compensation-related expenses and a one-time medical expense accrual have increased short-term costs. If not managed effectively, these could impact profitability.
Pension Risk Transfer (PRT) Variability: While PRT transactions have shown strong growth, their inherent variability could lead to inconsistent revenue streams, impacting financial predictability.
Earnings Trajectory Post-VA Reinsurance: The VA reinsurance transaction is expected to be accretive by the second half of 2026, but in the interim, EPS will be lower due to the timing of share repurchases funded by transaction proceeds.
Regulatory Approval and Product Launch: Corebridge received regulatory approval to sell its RILA product in New York state, one of the largest annuity markets in the U.S. The company plans to launch this product by the end of the year.
Capital Management and Shareholder Returns: Corebridge plans to maintain a target payout ratio of 60%-65% and expects elevated levels of share repurchases in the coming quarters, supported by the $2 billion increase in share repurchase authorization.
Market Trends and Business Opportunities: The macro environment remains favorable, with strong demand for retirement income products and opportunities in life insurance due to a large protection gap. Institutional Markets are also expected to benefit from strong pension plan funding levels and continued derisking by plan sponsors.
Earnings Growth and Financial Targets: Corebridge aims to achieve a 12%-14% return on equity, an average 10%-15% annual EPS growth rate over time, and maintain a Life Fleet RBC ratio above target.
Alternative Investment Returns: The company expects alternative investment returns for the fourth quarter to remain below long-term expectations of 8%-9%, with potential benefits from increased M&A activity but continued lag in real estate equity performance.
Group Retirement Business Growth: Corebridge is investing in upgrading in-plan services and wealth management offerings to increase enrollments and rollover recaptures. Adviser headcount and productivity are expected to drive future earnings growth in this segment.
Institutional Markets Outlook: The outlook for Pension Risk Transfer (PRT) transactions remains strong for the fourth quarter and beyond, supported by robust pension plan funding levels in the U.S. and U.K.
Balance Sheet and Liquidity: Corebridge plans to maintain a strong balance sheet with moderate leverage and robust liquidity, supported by a diversified, high-quality investment portfolio.
Dividends Returned to Shareholders: Year-to-date, Corebridge returned more than $1.4 billion to shareholders through buybacks and dividends.
Payout Ratio: The payout ratio over the period was 80%, reflecting the impact of the VA reinsurance transaction. The target payout ratio remains 60% to 65%.
Share Repurchases: Capital return in the quarter was $509 million, including $381 million of share repurchases. Since September 30, over $370 million has been returned to shareholders, with elevated levels of share repurchases expected in the coming quarters.
Share Repurchase Authorization: The Board authorized a $2 billion increase to the share repurchase program in June.
The company demonstrates strong financial performance and strategic growth plans, including a significant reinsurance transaction and a focus on annuity products for an aging population. Despite some unclear management responses, the Q&A session reveals robust demand for annuities and effective risk management strategies. The company's commitment to EPS growth and capital management, along with strategic investments in its adviser force, supports a positive outlook. These factors, coupled with continued growth in institutional markets and a focus on expense efficiency, indicate a likely positive stock price movement.
The earnings call presents a mixed picture: strong product sales and strategic growth initiatives are positive, but there are concerns about spread compression, alternative investment returns, and unclear timelines for certain financial improvements. The Q&A section reveals analysts' concerns about these uncertainties, impacting sentiment. Despite positive elements like the RILA product success and AI opportunities, the overall sentiment is balanced by financial challenges and management's lack of clarity on some issues, leading to a neutral prediction for stock price movement.
The earnings call summary presents strong financial performance, with a 5% increase in operating EPS and a 23% rise in life insurance income. The company has returned $454 million to shareholders and reduced share count by 10%. Despite lower premiums, strong demand for annuities and strategic growth initiatives, including technology investments, support a positive outlook. The Q&A section highlights robust demand and strategic asset repositioning, although some responses lacked clarity. Overall, the positive financial results and shareholder returns suggest a likely stock price increase in the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
