Slide 1: Long-Duration Targeted Improvements Financial Results Presentation
Long-Duration Targeted Improvements Financial Results Presentation corebridge’° financial May 4, 2023
Slide 2: Cautionary statement regarding forward-looking information, non-GAAP financial measures, key operating metrics and key terms
Cautionary statement regarding forward-looking information, non-GAAP financial measures, key operating metrics and key terms Note: in this presentation, “we,” “us” and “our” refer to Corebridge and its consolidated subsidiaries, unless the context refers solely to Corebridge as a corporate entity. C
Slide 3: Key highlights
Key highlights Long-duration targeted improvements (LDTI) adopted in 1Q23, retroactive to January 1, 2021 LDTI reduces volatility in adjusted pre-tax operating income (APTOI)! by minimizing market-driven impacts and variability in mortality experience Constant level deferred acquisition costs (DAC)
Slide 4: Summary of significant changes due to LDTI
Summary of significant changes due to LDTI Products affecte Liability for + Traditional life + Requires cash flow assumptions and actual experience to be updated on a future + Pension risk transfer cumulative catch-up basis (i.e., retrospective); going forward, recognized through policyholder + Payo
Slide 5: Key metrics
Key metrics Pre-LDTI 4Q22 3Q22 2Q22 1Q22 2022 2021 Operating EPS'($) 0.88 0.57 0.53 0.89 2.87 4.54 Adjusted pre-tax operating income! ($M) 639 423 424 697 2,183 3,685 Adjusted return on average equity! 10.6% 6.8% 6.6% 11.6% 91% 12.6% Shareholders’ equity ($B) 8.2 75 ng 19.5 8.2 271 Adjusted book val
Slide 6: Notable items
Notable items Post-LDTI 4Q22 3Q22 2Q22 1922 2022 APTOI' Operating APTOI' Operating APTOI' Operating APTOI' Operating APTOI' Operating ($M) EPS'— ($M)_~—sEPS'~—s ($M)_~—SsEPS'~—s ($M)_~—SsEPS'—s ($M) _~—CEEPSS! Annual actuarial assumption review - - 29 0.04 - - - <= 29 0.04 Investments 85 0.10 (41) (
Slide 7: Individual Retirement
Individual Retirement Post-LD Key changes arising from implementation of LDTI + Annuity SOP 03-1 reserves included in MRB; removed from APTOI Fee income reflects a small reduction in policy fees; included in MRB and moves to below the line DAC expense reflects straight- line amortization, with minim
Slide 8: Group Retirement
Group Retirement Post-| Key changes arising from implementation of LDTI + Annuity SOP 03-1 reserves included in MRB; removed from APTOI Fee income reflects a small reduction in policy fee: included in MRB and moves to below the line DAC expense reflects straight- line amortization, with minimal impa
Slide 9: Life Insurance
Life Insurance Post-' Key changes arising from implementation of LDTI + Mortality impact muted due to larger reserve offset on traditional products 430 389 370 me 49 2 2Q22 3022 4Q22 I Underwriting margin ex. VI 142 124 = . 2 97 & 2Q22 3022 4Q22 vi 459 375 2022 447 107 2022
Slide 10: Institutional Markets
Institutional Markets Post-LDT Key changes arising from implementation of LDTI + Mortality impact muted due to larger reserve offset 138 44 102 101 . 4 84 1Q22 4Q22 Und 15 5 83 oF =z, 60 2Q22 3Q22 lerwriting margin ex. VII vi 650 282 2021 547 290 vie 425 51 334 54
Slide 11: Important factors, non-GAAP measures, key metrics and reconciliations
Important factors that could cause actual results to differ, possibly materially, from expectations or estimates Use of non-GAAP financial measures Key operating metrics and key terms Non-GAAP reconciliations and other financial disclosures
Slide 12: Important factors that could cause actual results to differ, possibly materially, from expectations or estimates
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 actu
Slide 13: Use of non-GAAP financial measures
Use of non-GAAP financial measures 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 and Exchange Commission rules and regulations. We believe presentation of these non-GAAP financial mea
Slide 14: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) INVESTMENT RELATED ADJUSTMENTS: APTOI excludes “Net realized gains (losses),” including changes in the allowance for credit losses on available-for-sale securities and loans, as well as gains or losses from sales of securities, except fo
Slide 15: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) 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 exclu
Slide 16: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) available-for-sale securities portfolio, changes in the fair value of market risk benefits attributable to changes in the instrument-specific risk, changes in the discount rates used to measure traditional and limited payment long-durati
Slide 17: Key operating metrics and key terms
Key operating metrics and key terms 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 pr
Slide 18: Non-GAAP reconciliations: pre-tax income to adjusted pre-tax income
Non-GAAP reconciliations and other financial disclosures Pre-tax income to adjusted pre-tax income and after-tax income to adjusted after- tax income Twelve Months Ended Des Pre-tax income/net in ling intere Noncontrolling interests Pre-tax income/net income attributabl Fortitude Re Related items Ne
Slide 19: Adjusted pre-tax operating income by segment
Non-GAAP reconciliations and other financial disclosures Adjusted pre- tax operating income by segment Premiums Policy fees Net investment income Net realized gains (losses) Advisory fee and other income Total adjust Policyholder benefits Interest credited to policyholder account balances Amortizati
Slide 20: Sources of income
Non-GAAP reconciliations and other financial disclosures Sources of income Spread income Fee income Spread income Fee income Total Group Rt fe Ins Underwriting margin Spread income Fee income Underwriting margin Total Institutional Marke Total Spread income Fee income Underwriting margin
Slide 21: Sources of income (continued)
Non-GAAP reconciliations and other financial disclosures Sources of income (continued) ife Insurance Premiums Policy fees Net investment income Other income Policyholder benefits Interest credited to policyholder account balances Less: Impact of annual actuarial assumption update institutional Marke
Slide 22: Operating earnings per share
Non-GAAP reconciliations and other financial disclosures Operating earnings per shares in he Class A and B shares, except with the sale of the af (in millions except per common share data) GAAP Basis Numerator for EPS Net income (loss) Less: Net income (loss) attributable to noncontrolling interests
Slide 23: Adjusted book value per share and adjusted return on average equity
Non-GAAP reconciliations and other Total Corebridge shareholders equlty (2) financial Less: Accumulated other comprehensive income (AOC!) ‘Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets disclosures Total adjusted book valve ( Total common shares outstanding