Corebridge Financial Inc. · NYSE:CRBG
Corebridge Financial — Q2 2024 Earnings Presentation
32 slides from Corebridge Financial's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Financial Results Presentation
Second Quarter 2024 Financial Results Presentation August 1, 2024
Slide 2: Corebridge value proposition
Corebridge value proposition icon icon icon tbd tbd tbd Diversified Strong Disciplined business model balance sheet execution We are well positioned to continue creating shareholder value as demonstrated by growth in our earnings and cash generation 2
Slide 3: Key second quarter highlights
Key second quarter highlights Diversified business model capitalizes on attractive conditions and customer demand • 1 Market-leading businesses delivered $11.7 billion of premiums and deposits, up 17% year over year $1.13 Operating EPS1 • Grew core sources of income2,3 5% year over year with increas
Slide 4: Strategically driving long-term growth and value
Strategically driving long-term growth and value Individual Retirement Group Retirement • Quarterly sales record of $6.8 billion, 68% growth year • Consistent earnings with balanced sources of income over year between fee and spread • General account net flows of $3.0 billion contributed to • Out-of
Slide 5: Extending track record of disciplined execution
Extending track record of disciplined execution October 2023 April 2024 Closed sale of Laya Healthcare; Completed Corebridge Forward expense returned ~$730 million proceeds via and modernization program, acting or special dividend in November 2023 contracting on $400 million run-rate savings Septemb
Slide 6: Delivering strong business results
Delivering strong business results Adjusted return on average equity 2Q23 2Q23 10.4% 1.3% 11.7% +90 bps APTOI Operating excluding VII ($M) EPS ($) 2Q24 11.3% 0.7% 12.0% Notable items — — Alternative investments returns versus Operating EPS ($) (30) (0.04) long-term return expectations 2Q23 0.92 0.12
Slide 7: Asset growth driving spread and fee income
Asset growth driving spread and fee income Assets under management and administration1 ($B) Separate account returns 394 372 89 4.9% 86 +6% 1.7% total 94 90 AUMA 2Q23 2Q24 196 211 New money versus roll off yields2 2Q23 2Q24 7 7 General account Separate account Assets under administration 6.6% 6.4% 5
Slide 8: Diversified businesses generate 5% growth in aggregate core sources of income
Diversified businesses generate 5% growth in aggregate core sources of income Spread Income1,2 ($M) Fee Income1,2 ($M) Underwriting Margin1,2 ($M) +3% +8% +4% excluding VII excluding VII & international life business 1,014 1,002 90 47 514 474 381 329 955 66 924 6 7 474 514 309 322 2Q23 2Q24 2Q23 2Q2
Slide 9: Insurance company distributions enable active capital management
Insurance company distributions enable active capital management Insurance company distributions ($M) Capital and liquidity highlights 600 500 527 500 500 • Insurance companies generated strong cash flows while maintaining Life Fleet RBC ratio above target • Year-to-date insurance company distributi
Slide 10: Appendix
Appendix 10
Slide 11: Individual Retirement
Individual Retirement Sources of income ($M) Second quarter highlights Earnings growth driven by strong sales and attractive margins 1,031 964 31 • Quarterly sales record contributed to general account net inflows of $3.0 billion 30 308 • Base spread income increased 6% year over year largely the re
Slide 12: Group Retirement
Group Retirement Sources of income ($M) Second quarter highlights 391 382 Consistent earnings with balanced sources of income 20 11 • Out-of-plan annuity sales comprise 37% of premiums and deposits 178 191 • Fee income increased 7% year over year driven by higher account values and growing —% adviso
Slide 13: Life Insurance
Life Insurance Sources of income ($M) Second quarter highlights 361 Earnings growth driven by favorable mortality experience 66 309 • New business sales reflect strong product positioning and success of automated and 6 7 accelerated underwriting practices +4% • Underwriting margin excluding VII and
Slide 14: Institutional Markets
Institutional Markets Sources of income ($M) Second quarter highlights 153 Earnings growth driven by new business 40 123 • Reserves increased 17% year over year largely the result of spread-based products 55 20 +4% 20 • Base spread income increased 8% year over year driven by growth in our pension r
Slide 15: High-quality, well-diversified investment portfolio
High-quality, well-diversified investment portfolio 2% 4% 3% 2% Government obligations • Liability driven investment strategy supported by 15% Public corporate debt disciplined asset-liability management process Private corporate debt RMBS 34% CMBS • Diversified across asset class, sector, geography
Slide 16: Notable items
Notable items ($ in millions, except per share data) 2Q24 Notable Items Alternative investments Business segment returns versus long-term Total adjustments Investments All other return expectations Individual Retirement — — (12) (12) Group Retirement — — (7) (7) Life Insurance — — (3) (3) Institutio
Slide 17: Explanation of footnotes
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 1 reconciliations to their most directly comparable GAAP measures are included in the Appendix 2 This pr
Slide 18: Explanation of footnotes
Explanation of footnotes 1 Excludes international life business Page 2 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 13 and single premiums from new and existing policyhol
Slide 19: 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 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 statemen
Slide 20: Important factors that could cause actual results to differ
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 21: 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 business results. Some of the measurements we use are ‘‘Non-GAAP financial measures’’ under SEC rules
Slide 22: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) 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
Slide 23: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) 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 measur
Slide 24: Key operating metrics and key terms
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 Administrat
Slide 25: Key operating metrics and key terms
Key operating metrics and key terms (continued from prior page) 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 RB
Slide 26: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Pre-tax income to adjusted pre-tax operating income & after-tax income to adjusted after-tax operating income Three Months Ended June 30, 2024 2023 Total Tax Non- Total Tax Non- Pre-tax (Benefit) controlling After Tax Pre-tax (Benefit) control
Slide 27: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Adjusted pre-tax operating income by segment (in millions) Individual Retirement Group Retirement Life Insurance Institutional Markets Corporate & Other Eliminations Total Corebridge Premiums $ 30 $ — $ 331 $ 167 $ 19 $ — $ 547 Policy fees 200
Slide 28: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Sources of income Three Months Ended June 30, (in millions) 2024 2023 Premiums $ 331 $ 443 Policy fees 366 371 Net investment income 322 327 Life Insurance Other income 1 26 Policyholder benefits (627) (721) Interest credited to policyholder a
Slide 29: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Sources of income Three Months Ended June 30, (in millions) 2024 2023 Individual Retirement Spread income $ 723 $ 684 Fee income 308 280 Total Individual Retirement 1,031 964 Group Retirement Spread income 191 213 Fee income 191 178 Total Grou
Slide 30: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Operating earnings per share Three Months Ended June 30, (in millions, except per common share data) 2024 2023 GAAP Basis Numerator for EPS Net income (loss) $ 341 $ 751 Less: Net income (loss) attributable to noncontrolling interests (24) (20
Slide 31: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Adjusted return on average equity Three Months Ended June 30, (in millions, unless otherwise noted) 2024 2023 Actual or annualized net income (loss) attributable to Corebridge shareholders (a) $ 1,460 $ 3,084 Actual or annualized adjusted afte
Slide 32: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Premiums and deposits Three Months Ended June 30, (in millions) 2024 2023 Individual Retirement Premiums $ 30 $ 66 Deposits 6,761 3,984 (1) Other (4) (5) Premiums and deposits 6,787 4,045 Group Retirement Premiums — 4 Deposits 1,998 1,919 Prem