Slide 1: Third Quarter 2024 Financial Results Presentation
Third Quarter 2024 Financial Results Presentation November 5, 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 third quarter highlights
Key third quarter highlights Diversified business model capitalizes on compelling growth opportunities • 1 Premiums and deposits remained strong at $9.6 billion, driven by our broad product suite and distribution network $1.38 Operating EPS1 • Aggregate core sources of income2 grew 4% year over year
Slide 4: Four successful, market-leading businesses
Four successful, market-leading businesses Individual Retirement Group Retirement • Premiums and deposits improved 40% year over year as • Premiums and deposits excluding plan acquisitions products continue to meet needs of customers and improved 10% year over year distribution partners • Advisory a
Slide 5: Levers to increase EPS and drive long-term value
Levers to increase EPS and drive long-term value Drive Optimize Create Active organic growth balance sheet expense efficiencies capital management • Innovate products and • Pursue opportunities to • Generate expense • Effectively manage capital services to meet needs of optimize assets and efficienc
Slide 6: Solid fundamentals drive strong business results
Solid fundamentals drive strong business results Adjusted return on average equity 3Q23 3Q23 10.9% 0.5% 11.4% APTOI Operating +120 bps ($M) EPS ($) excluding VII & Annual actuarial assumption review 22 0.03 3Q24 13.0% 1.7% 14.7% notable items Notable items 22 0.03 Operating EPS ($) Alternative inves
Slide 7: Diversified businesses generate growth
Diversified businesses generate growth Spread Income1,2 ($M) Fee Income1 ($M) Underwriting Margin1,2 ($M) +1% +11% +4% excluding VII excluding VII, notable items & international life business 1,038 951 111 33 537 485 417 398 6 63 918 927 4 537 485 411 331 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Base spread in
Slide 8: Track record delivering across different interest rate environments
Track record delivering across different interest rate environments Sources of income1 Consistently generating attractive returns over time even with short-term impacts from changing market dynamics • Resilient core sources of income across low-rate and high-rate environments • Four complementary bu
Slide 9: Strong capital generation and attractive shareholder return
Strong capital generation and attractive shareholder return Insurance company distributions ($M) Capital and liquidity highlights 600 550 527 500 500 • Insurance companies generated strong cash flows while maintaining Life Fleet RBC ratio above target • Year-to-date U.S. insurance company distributi
Slide 10: Appendix
Appendix 10
Slide 11: Individual Retirement
Individual Retirement Sources of income ($M) Third quarter highlights • Base spread income increased 3% year over year largely the result of general account 1,050 961 asset growth driven by new business volume and higher sustained new money yields 44 10 321 • Fee income increased 11% year over year
Slide 12: Group Retirement
Group Retirement Sources of income ($M) Third quarter highlights 389 377 • Out-of-plan annuity sales comprise 36% of premiums and deposits 17 27 • Business continues to transition into capital-light, fee-based revenue stream; fee 180 income increased 12% year over year driven by higher account value
Slide 13: Life Insurance
Life Insurance Sources of income ($M) Third quarter highlights 384 392 • New business sales reflect strong product positioning and success of data-driven 5 practices 63 3 • Underwriting margin excluding VII, notable items and international life increased 2% +2% year over year driven by more favorabl
Slide 14: Institutional Markets
Institutional Markets Sources of income ($M) Third quarter highlights 173 • Base spread income increased 45% year over year driven by growth in pension risk 41 transfer business and guaranteed investment contracts 24 • Underwriting margin excluding VII and notable items increased 45% year over year
Slide 15: High-quality, well-diversified investment portfolio
High-quality, well-diversified investment portfolio 3% 2%2% 4% Government obligations • Liability driven investment strategy supported by 15% Public corporate debt disciplined asset-liability management process Private corporate debt RMBS 35% CMBS • Diversified across asset class, sector, geography
Slide 16: Notable items
Notable items ($ in millions, except per share data) 3Q24 Notable Items Alternative investments Business segment returns versus long-term Total adjustments Annual unlocking All other return expectations Individual Retirement 18 — (12) 6 Group Retirement (1) — 3 2 Life Insurance (29) 62 (3) 30 Instit
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 Page 2 Th
Slide 18: Cautionary statement regarding forward-looking information, non-GAAP financial measures
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 19: 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 20: 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 21: 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 22: 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 23: 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 24: Key operating metrics and key terms
Key operating metrics and key terms (continued from prior page) 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 Compa
Slide 25: 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 September 30, 2024 2023 Total Tax Non- Total Tax Non- Pre-tax (Benefit) controlling After Tax Pre-tax (Benefit) co
Slide 26: 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 $ 36 $ 5 $ 352 $ 208 $ 17 $ — $ 618 Policy fees 205
Slide 27: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Sources of income Three Months Ended September 30, (in millions) 2024 2023 Premiums $ 352 $ 449 Policy fees 360 371 Net investment income 336 313 Life Insurance Other income 81 29 Policyholder benefits (687) (673) Interest credited to policyho
Slide 28: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Sources of income Three Months Ended September 30, (in millions) 2024 2023 Individual Retirement Spread income $ 729 $ 672 Fee income 321 289 Total Individual Retirement 1,050 961 Group Retirement Spread income 176 209 Fee income 201 180 Total
Slide 29: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Operating earnings per share Three Months Ended September 30, (in millions, except per common share data) 2024 2023 GAAP Basis Numerator for EPS Net income (loss) $ (1,187) $ 2,069 Less: Net income (loss) attributable to noncontrolling interes
Slide 30: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Adjusted return on average equity Three Months Ended September 30, (in millions, unless otherwise noted) 2024 2023 Actual or annualized net income (loss) attributable to Corebridge shareholders (a) $ (4,736) $ 8,404 Actual or annualized adjust
Slide 31: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Premiums and deposits Three Months Ended September 30, (in millions) 2024 2023 Individual Retirement Premiums $ 36 $ 29 Deposits 5,493 3,935 (1) Other (3) (3) Premiums and deposits 5,526 3,961 Group Retirement Premiums 5 6 Deposits 1,958 1,825