Slide 1: Fourth Quarter and Full Year 2023 Financial Results Presentation
Fourth Quarter and Full Year 2023 Financial Results Presentation February 15, 2024
Slide 2: 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 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 for fourth quarter 2023
Key highlights for fourth quarter 2023 Focused execution generating $661 million of AATOI1, or Operating EPS1 of $1.04, up 12% year over year Diverse and • Adjusted return on average equity1 of 11.2%, up 80 basis points year over year attractive • Aggregate core sources of income grew 6% year over y
Slide 4: Successful twelve months driving long-term value creation
Successful twelve months driving long-term value creation Earnings Profitability Sources of income +12% +90 bps +30% Operating EPS Adjusted ROAE Base spread income (2022 to 2023) (2022 to 2023) (2022 to 2023) Sales Operating expenses Capital return +26% -14% $2.2B Premiums and deposits1 General oper
Slide 5: Strong operating results across core businesses
Strong operating results across core businesses Adjusted return on average equity 4Q22 APTOI Operating 4Q22 10.4% ($M) EPS ($) 80 bps Investments 85 0.10 4Q23 11.2% Dispute resolution (42) (0.05) Taxes n/a 0.10 Operating EPS ($) Notable items 43 0.15 Alternative investments returns versus long-term
Slide 6: Diversified income sources support attractive returns through market cycles
Diversified income sources support attractive returns through market cycles Sources of income1 ($M) Key highlights 1,840 1,750 4 22 Base spread income improved in current quarter 1,836 364 442 with higher new money rates and growth of general 1,728 account portfolio 485 468 • New money rates at high
Slide 7: Base yield expansion continues to benefit from attractive new money yields
Base yield expansion continues to benefit from attractive new money yields Net investment income (APTOI basis)1,2 ($M) New money yields2 2,465 2,568 2,223 4 7.0% 37 6.8% 23 4.9% 5.1% 2,428 2,564 2,200 3.9% 3.9% 4Q22 3Q23 4Q23 4Q22 4Q23 Base portfolio income3 VII New money yield5 Roll off yield6 10-y
Slide 8: Reduced expenses, increased efficiencies, built stand-alone capabilities
Reduced expenses, increased efficiencies, built stand-alone capabilities Corebridge Forward Operational Separation $351M $168M Cumulative exit run rate savings1 Cumulative cost to achieve $425M Cumulative spend Modernization program delivering expense reduction and increased Expenses incurred to est
Slide 9: Individual Retirement
Premiums and deposits ($M) Base net investment spread Individual 5,282 2.51% Retirement 350 2.14% 3,827 1,907 652 55% contribution to aggregate 1,749 sources of income 3,025 1,426 4Q22 4Q23 4Q22 4Q23 • Premiums and deposits reflect Fixed Annuities Fixed Index Annuities Variable Annuities attractive
Slide 10: Group Retirement
Premiums and deposits ($M) Base net investment spread Group 2,243 1.59% Retirement 500 2,083 1.44% 199 691 162 20% contribution to aggregate sources of income 1,544 1,230 4Q22 4Q23 4Q22 4Q23 • Premiums and deposits In-plan Out-of-plan variable annuities excluding new plan acquisitions grew 4% over O
Slide 11: Life Insurance
Premiums and deposits ($M) In force1 ($B) Life 1,209 1,240 Insurance 1,073 1,103 225 244 200 232 126 126 19% contribution 410 408 to aggregate sources of income 858 869 463 463 • Premiums and deposits reflect 4Q22 4Q23 4Q22 4Q23 emphasis on protection Term/Traditional Universal Life & other Internat
Slide 12: Institutional Markets
Premiums and deposits ($M) Reserves1 ($B) Institutional 2,004 38 Markets 1,551 153 31 11 223 11 7% contribution 10 to aggregate 1,851 8 sources of income 1,328 17 12 4Q22 4Q23 4Q22 4Q23 • Premiums and deposits reflect transactional nature of business Pension Risk Transfer Guaranteed Investment Contr
Slide 13: Returned $2.2 billion to shareholders for full year
Returned $2.2 billion to shareholders for full year Key highlights Capital return2 ($M) Insurance companies distributed $500 million to holding company in fourth quarter, bringing full year distributions to $2.0 billion Returned $1.1 billion to shareholders in fourth quarter, 731 bringing full year
Slide 14: High-quality, well-diversified investment portfolio
High-quality, well-diversified investment 3% 2%2% 5% portfolio Government obligations 15% Public corporate debt Private corporate debt RMBS • Liability driven investment CMBS strategy supported by 1,2 36% 3% CLO disciplined asset-liability $202.8B ABS management process Residential mortgage loans 7%
Slide 15: Key financial goals built on strong balance sheet and attractive cash return
Key financial goals built on strong balance sheet and attractive cash return Balance sheet Profitability Capital return 400%+ $600 million Life Fleet RBC Ratio Aggregate annual stockholder 12% - 14% dividends Adjusted ROAE 25% - 30% 60% - 65% Target financial leverage1 Payout ratio Note: See appendi
Slide 16: Appendix
Commercial mortgage loan portfolio Full year notable items Footnotes Important factors that could cause actual results to differ, Appendix possibly materially, from expectations or estimates Use of non-GAAP financial measures Key operating metrics and key terms Non-GAAP reconciliations and other fin
Slide 17: Commercial mortgage loans
Commercial mortgage loans 59% Other Weighted average 1% LTV Represents 15% of total Multifamily invested assets 41% 1.89x Hotel • Continue to maintain strong 6% credit metrics • $36 million median loan size Weighted average 1,2 debt service • 99.94% in good standing; only Retail $30.9B coverage rati
Slide 18: Commercial mortgage loans | Office
Commercial mortgage loans | 63% 78% Office Weighted Class A3 average LTV Represents 4% of total invested assets • Traditional office represents 2% of total invested assets Life science 1.93x 84% 10% Weighted average Occupancy • Continue to maintain sound Traditional credit metrics U.S. office debt s
Slide 19: Full year notable items
Full year notable items 2022 2023 APTOI Operating APTOI Operating ($M) EPS ($) ($M) EPS ($) Annual actuarial assumption review 29 0.04 Annual actuarial assumption review 22 0.03 Investments 99 0.12 Investments 23 0.03 Dispute resolution (42) (0.05) Dispute resolution — — Reserves 35 0.04 Reserves —
Slide 20: 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 21: Explanation of footnotes
Explanation of footnotes Page 1 Acted upon or contracted 8 Page 1 Includes direct and assumed business 11 1 Pension risk transfer reserves at original discount rate, excluding deferred profit liability Page 2 Includes corporate and bank-owned life insurance, high net worth, structured settlements an
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: Non-GAAP reconciliations and other financial disclosures
Non-GAAP Three Months Ended December 31, 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 29: Non-GAAP reconciliations and other financial disclosures
Non-GAAP Twelve Months Ended December 31, 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 30: 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 December 31, 2023 Premiums $ 40 $ 4 $ 459 $ 1,921 $ 19 $ — $ 2,443 and other Policy fees 180 102 371 50 — — 703 financ
Slide 31: 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 December 31, 2022 Premiums $ 63 $ 3 $ 582 $ 1,375 $ 20 $ — $ 2,043 and other Policy fees 178 96 397 49 — — 720 financi
Slide 32: 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 Twelve Months Ended December 31, 2023 Premiums $ 213 $ 20 $ 1,776 $ 5,607 $ 78 $ — $ 7,694 and other Policy fees 708 406 1,488 195 — — 2,
Slide 33: 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 Twelve Months Ended December 31, 2022 Premiums $ 235 $ 19 $ 1,864 $ 2,913 $ 82 $ — $ 5,113 and other Policy fees 741 415 1,564 194 — — 2,
Slide 34: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Three Months Ended December 31, 2023 2022 Twelve Months Ended December 31, 2023 2022 reconciliations Individual Retirement and other Spread income Fee income $ 715 288 $ 574 283 $ 2,694 1,134 $ 2,027 1,192 financial Total Individual Retirement 1,003 857 3,828 3,219 disclosures
Slide 35: Non-GAAP reconciliations and other financial disclosures
Life Insurance Three Months Ended December 31, Twelve Months Ended December 31, Non-GAAP (in millions) Premiums $ 2023 459 $ 2022 582 $ 2023 1,776 $ 2022 1,864 reconciliations Policy fees 371 397 1,488 1,564 and other Net investment income Other income 325 9 376 27 1,282 93 1,389 121 financial Polic
Slide 36: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions, except per common share data) Three Months Ended December 31, 2023 2022 Twelve Months Ended December 31, 2023 2022 reconciliations GAAP Basis and other Numerator for EPS Net income (loss) $ (1,331) $ (168) $ 1,036 $ 8,479 financial Less: Net income (loss) attributable to nonco
Slide 37: Non-GAAP reconciliations and other financial disclosures
Non-GAAP Three Months Ended December 31, Twelve Months Ended December 31, (in millions) 2023 2022 2023 2022 reconciliations Subsidiary dividends paid Less: Non-recurring dividends $ 500 — $ 200 — $ 2,027 — $ 1,821 — and other Tax sharing payments related to utilization of tax attributes — — — 401 fi
Slide 38: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Three Months Ended December 31, 2023 2022 Twelve Months Ended December 31, 2023 2022 reconciliations Individual Retirement and other Premiums Deposits $ 40 5,245 $ 63 3,764 $ 213 17,971 $ 235 14,900 financial Other (1) (3) — (13) (15) disclosures Premiums and deposits 5,282 3,