Slide 1: Third Quarter 2023 Financial Results Presentation
Third Quarter 2023 Financial Results Presentation November 3, 2023
Slide 2: Cautionary statement regarding forward-looking information and non-GAAP financial measures
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 Generated strong results with $675 million of AATOI1, or Operating EPS1 of $1.05, up 28% year over year Diverse and • Adjusted return on average equity1 of 11.4%, up 230 basis points year over year attractive • Aggregate core sources of income grew 11% year over year, with base spread
Slide 4: Focused execution continues to drive shareholder value
Focused execution continues to drive shareholder value Two transactions unlocking over $1.2 billion of additional shareholder value September 2022 August 2023 September 2023 Corebridge IPO, largest Announced sale of Laya Announced sale of UK life U.S. listing of 2022 Healthcare to AXA for business t
Slide 5: Progress on key targets set out at initial public offering
Progress on key targets set out at initial public offering Key target at IPO Resulting progress Key achievements 31% organic growth in base spread income4 Profitability 12-14% 12.0% $15.4B new money invested from Blackstone strategic partnership5 Run-rate Adjusted ROAE Adjusted ROAE for YTD2 81% of
Slide 6: Strong operating results across core businesses
Strong operating results across core businesses Adjusted return on average equity 3Q22 APTOI Operating 3Q22 9.1% ($M) EPS ($) 230 Annual actuarial assumption review 29 0.04 bps 3Q23 11.4% Investments (41) (0.05) Taxes n/a 0.06 Notable items (12) 0.04 Operating EPS ($) Alternative investments returns
Slide 7: Diversified income sources support attractive returns in various market conditions
Diversified income sources support attractive returns in various market conditions Sources of income1 ($M) Base spread income improved with higher new money rates and growth of overall portfolio 1,834 37 1,614 1,797 394 Fee income2 declined due to impact of market 1,615 performance on fixed income a
Slide 8: Base yield expansion continues to benefit from attractive new money yields
Base yield expansion continues to benefit from attractive new money yields Net investment income (APTOI basis)1,2 ($M) New money yields2 2,462 2,465 96 37 6.6% 1,995 6.1% 5.1% 4.8% 2,366 2,428 1,996 4.6% 3.8% 3Q22 (1) 2Q23 3Q23 3Q22 3Q23 Base portfolio income3 VII New money yield5 Roll off yield6 10
Slide 9: Corebridge Forward expense savings and separation costs
Corebridge Ahead of plan to achieve nearly $400 million of exit run rate savings… Forward 2022 2023 2024 Expense savings through execution of the following $322 million1 initiatives • Refine target operating model end state • Expand current outsourcing programs • Complete cloud migration, exit data
Slide 10: Individual Retirement
Premiums and deposits ($M) Base net investment spread Individual 3,961 2.47% Retirement 3,792 731 398 1.85% 2,224 52% contribution 1,745 to aggregate sources of income 1,316 1,339 3Q22 3Q23 3Q22 3Q23 • Premiums and deposits reflect Fixed Annuities Fixed Index Annuities Variable Annuities attractive
Slide 11: Group Retirement
Premiums and deposits ($M) Base net investment spread Group 2,039 1.57% 1.52% Retirement 332 1,831 236 417 189 21% contribution to aggregate sources of income 1,471 1,225 3Q22 3Q23 3Q22 3Q23 • Premiums and deposits In-plan Out-of-plan variable annuities excluding new plan acquisitions declined 1% ve
Slide 12: Life Insurance
Premiums and deposits ($M) In force1 ($B) Life 1,057 1,085 1,244 Insurance 196 239 1,186 205 250 125 126 404 393 21% contribution to aggregate sources of income 856 868 457 453 3Q22 3Q23 3Q22 3Q23 • Premiums and deposits reflect Term/Traditional Universal Life & other International Term/Traditional
Slide 13: Institutional Markets
Premiums and deposits ($M) Reserves1 ($B) Institutional 2,256 37 Markets 1,897 198 30 11 141 11 6% contribution 1,000 10 to aggregate 1,921 sources of income 8 16 756 11 137 3Q22 3Q23 3Q22 3Q23 • Premiums and deposits reflect transactional nature Pension Risk Transfer Guaranteed Investment Contracts
Slide 14: High-quality, well-diversified investment portfolio
High-quality, well-diversified investment 3% 2% 2% 5% portfolio Government obligations Public corporate debt 16% Private corporate debt RMBS • Liability driven investment CMBS strategy supported by 34% 1,2 CLO disciplined asset-liability 3% $188.6B ABS management process Residential mortgage loans •
Slide 15: Appendix
Commercial mortgage loan portfolio Footnotes Important factors that could cause actual results to differ, possibly materially, from expectations or estimates Appendix Use of non-GAAP financial measures Key operating metrics and key terms Non-GAAP reconciliations and other financial disclosures 15
Slide 16: Commercial mortgage loans
Commercial mortgage loans 59% Other Weighted average 1% LTV Represents 16% of total Multifamily invested assets 42% 1.92x Hotel • Continue to maintain strong 6% credit metrics • $33 million median loan size Weighted average Retail 1,2 debt service • 99.96% in good standing 9% $30.5B coverage ratio 4
Slide 17: Commercial mortgage loans: Office
Commercial mortgage loans | 64% 77% Office Weighted average LTV Class A3 Represents 4% of total invested assets • Traditional office represents 2% of total invested assets Life science 1.96x 84% 9% Weighted average Occupancy • Continue to maintain sound Traditional U.S. office debt service ratio cre
Slide 18: 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 1 measures and reconciliations to their most directly comparable GAAP measures are included in the Appendix Page 2 Th
Slide 19: Explanation of footnotes
Explanation of footnotes 4 Individual Retirement and Group Retirement only Page 8 5 Fixed maturities and loans (cont) 6 Sales and maturities Page 1 Acted upon or contracted 9 Page 1 Includes direct and assumed business 12 Page 1 Pension risk transfer reserves at original discount rate, excluding def
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 Securities
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 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 de
Slide 25: Key operating metrics and key terms
Key operating metrics and key terms (continued from prior page) 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,
Slide 26: Non-GAAP reconciliations and other financial disclosures
Non-GAAP Three Months Ended September 30, 2023 Total Tax Non- 2022 Total Tax Non- reconciliations (in millions) Pre-tax (Benefit) controlling Charge Interests After Tax Pre-tax (Benefit) controlling Charge Interests After Tax and other Pre-tax income/net income, including noncontrolling interests $
Slide 27: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Individual Retirement Group Retirement Life Insurance Institutional Markets Corporate & Other Eliminations Total Corebridge reconciliations Three Months Ended September 30, 2023 Premiums $ 29 $ 6 $ 449 $ 200 $ 19 $ — $ 703 and other Policy fees 182 102 371 47 — — 702 financial
Slide 28: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Individual Retirement Group Retirement Life Insurance Institutional Markets Corporate & Other Eliminations Total Corebridge reconciliations Three Months Ended September 30, 2022 Premiums $ 56 $ 3 $ 417 $ 804 $ 20 $ — $ 1,300 and other Policy fees 192 101 393 49 — — 735 financi
Slide 29: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Three Months Ended September 30, 2023 2022 reconciliations Individual Retirement and other Spread income Fee income $ 672 289 $ 463 300 financial Total Individual Retirement 961 763 disclosures Group Retirement Spread income 209 205 Fee income 180 175 Total Group Retirement 38
Slide 30: Non-GAAP reconciliations and other financial disclosures
Life Insurance Three Months Ended September 30, Non-GAAP (in millions) Premiums $ 2023 449 $ 2022 417 reconciliations Policy fees 371 393 and other Net investment income Other income 313 29 307 28 financial Policyholder benefits (673) (666) disclosures Interest credited to policyholder account balan
Slide 31: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions, except per common share data) Three Months Ended September 30, 2023 2022 reconciliations GAAP Basis and other Numerator for EPS Net income (loss) $ 2,069 $ 2,532 financial Less: Net income (loss) attributable to noncontrolling interests (32) 126 disclosures Net income (loss) a
Slide 32: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions, unless otherwise noted) Three Months Ended September 30, 2023 2022 reconciliations Actual or annualized net income (loss) attributable to Corebridge shareholders (a) $ 8,404 $ 9,624 and other Actual or annualized adjusted after-tax operating income attributable to Corebridge s
Slide 33: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Three Months Ended September 30, 2023 2022 reconciliations Individual Retirement and other Premiums Deposits $ 29 3,935 $ 56 3,740 financial Other (1) (3) (4) disclosures Premiums and deposits 3,961 3,792 Group Retirement Premiums 6 3 Deposits 1,825 2,036 (2)(3) Premiums and d