Slide 1: Second Quarter 2023 Financial Results Presentation
Second Quarter 2023 Financial Results Presentation August 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: Focused execution and competitive strengths of diversified businesses drive excellent results
Focused execution and competitive strengths of Financial metrics | 2Q23 diversified businesses drive excellent results Operating EPS1 Returned $1.2 billion to shareholders since IPO $1.04 Announced sale of Laya Healthcare to AXA for €650 million, Adjusted ROAE1 allowing us to focus on core businesse
Slide 4: Strong operating results across core businesses
Strong operating results across core businesses Adjusted return on average equity 2Q22 2Q22 8.7% APTOI Operating ($M) EPS ($) 2Q23 11.7% Reserves 35 0.05 Notable items 35 0.05 Operating EPS ($) Alternative investments returns versus (7) (0.01) long-term return expectations 2Q22 0.76 COVID mortality
Slide 5: Diversified income sources support attractive returns in various market conditions
Diversified income sources support attractive returns in various market conditions Sources of income1 ($M) Base spread income2 improved with higher new money rates and 1,869 growth of overall portfolio 96 1,622 120 1,773 375 Fee income2 declined due to impact of market performance on fixed 356 1,502
Slide 6: Base yield expansion continues to benefit from attractive new money rates
Base yield expansion continues to benefit from attractive new money rates Net investment income (APTOI basis)1,2 ($M) Base yield1,3 2,462 76 96 bps 4.42% 18 4.60% 2,277 28 3.84% bps 1,978 120 2Q22 1Q23 2Q23 2,249 2,366 Base net investment spread3 1,858 ~65 bps 2.31% ~10 2.41% bps 1.60% 1.52% 1.55% 1
Slide 7: Strong new money rates bolster base spread income growth
Strong new money rates bolster base spread income growth New money rates1 7.0% 6.6% 6.0% 5.0% 4.4% 4.0% 3.8% 3.0% 2.0% 1.0% —% 1Q19 2Q23 New money yield Roll off yield 10-year Treasury yield 1. Insurance operating businesses 7
Slide 8: Corebridge Forward expense savings and separation costs
Corebridge Ahead of plan to achieve nearly $400 million of exit run rate Forward savings… 2022 2023 2024 Expense savings through execution of the following $300 million1 initiatives • Refine target operating model end state • Expand current outsourcing programs • Complete cloud migration, exit data
Slide 9: Individual Retirement
Premiums and deposits ($M) Assets under management and administration ($B) Individual 4,045 140 143 Retirement 3,620 460 778 58 55 2,317 52% contribution 1,458 to aggregate 30 36 sources of income 1,384 1,268 52 52 2Q22 2Q23 2Q22 2Q23 • Premiums and deposits1 reflect Fixed Annuities Fixed Index Annu
Slide 10: Group Retirement
Premiums and deposits ($M) Assets under management and administration ($B) Group 1,923 115 119 Retirement 1,772 187 563 12 14 272 28 27 169 21% contribution 28 25 to aggregate sources of income 1,313 1,191 47 53 2Q22 2Q23 2Q22 2Q23 • Premiums and deposits In-plan Out-of-plan variable annuities In-pl
Slide 11: Life Insurance
Premiums and deposits ($M) Assets under management and administration ($B) Life 1,049 1,063 28 27 Insurance 207 225 389 384 19% contribution to aggregate sources of income 453 454 2Q22 2Q23 2Q22 2Q23 • Premiums and deposits reflect Term/Traditional Universal Life & other International improving mix
Slide 12: Institutional Markets
Premiums and deposits ($M) Assets under management and administration ($B) Institutional 2,910 83 Markets 108 75 917 8% contribution to aggregate 550 1,885 sources of income 100 450 2Q22 2Q23 2Q22 2Q23 Pension Guaranteed • Premiums and deposits Risk Investment Other1 Transfer Contracts reflect trans
Slide 13: Maintaining strong balance sheet, delivering on financial goals
Maintaining strong balance sheet, Capital and liquidity Book value delivering on financial goals $1.6 billion $36.44 $36.44 • Returned $750 million to share- Holding company liquidity1 Adjusted Adjustedbook bookvalue valueper 2 per holders over second quarter common commonshare share2 ◦ Paid $400 mi
Slide 14: Investment portfolio / Appendix
Investment portfolio Important factors that could cause actual results to differ, possibly materially, from expectations or estimates Use of non-GAAP financial measures Appendix Key operating metrics and key terms Non-GAAP reconciliations and other financial disclosures 14
Slide 15: High-quality, well-diversified investment portfolio
High-quality, well-diversified 3% 2% 2% 5% investment portfolio Government obligations 16% Public corporate debt Private corporate debt • Liability driven investment RMBS strategy supported by CMBS disciplined asset-liability 3% $192.3 36% CLO management process billion 1,2 ABS Residential mortgage
Slide 16: Commercial mortgage loans
Commercial mortgage loans Other Diversified portfolio supported by disciplined 1% Multifamily underwriting and proactive monitoring 42% Hotel 6% • Commercial mortgage loans represent 16% of total invested assets Retail $30.4 • Over half of exposure concentrated in multifamily 10% billion 1,2 and ind
Slide 17: Commercial mortgage loans | Office
Commercial mortgage loans | Office Began to reduce sector exposure several years Life science ago as view of traditional office evolved 9% Traditional • Office sector represents 4% of total invested assets $7.6 U.S. office 57% Mixed use billion 1,2 • Traditional US office, concentrated in major metr
Slide 18: 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 19: 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 20: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) MARKET RISK BENEFIT ADJUSTMENTS: 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 are accou
Slide 21: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) Adjusted after-tax operating income attributable to our common shareholders (“Adjusted After-tax Operating Income” or “AATOI”) is derived by excluding the tax effected APTOI adjustments described above, as well as the following tax items
Slide 22: Use of non-GAAP financial measures
Use of non-GAAP financial measures (continued from prior page) Operating Earnings per Common Share ("Operating EPS") is derived by dividing AATOI by weighted average diluted shares. Premiums and deposits is a non-GAAP financial measure that includes direct and assumed premiums received and earned on
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) • Spread income is defined as net investment income less interest credited to policyholder account balances, exclusive of amortization of deferred sales inducement assets. Spread income is comprised of both base spread income and variab
Slide 25: Non-GAAP reconciliations and other financial disclosures
Non-GAAP Three Months Ended June 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 $ 911 $
Slide 26: 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 June 30, 2023 Premiums $ 66 $ 4 $ 443 $ 1,911 $ 20 $ — $ 2,444 and other Policy fees 172 102 371 49 — — 694 financial
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 June 30, 2022 Premiums $ 60 $ 5 $ 440 $ 496 $ 21 $ — $ 1,022 and other Policy fees 186 104 390 49 — — 729 financial Ne
Slide 28: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Three Months Ended June 30, 2023 2022 reconciliations Individual Retirement and other Spread income Fee income $ 684 280 $ 448 301 financial Total Individual Retirement 964 749 disclosures Group Retirement Spread income 213 205 Fee income 178 177 Total Group Retirement 391 382
Slide 29: Non-GAAP reconciliations and other financial disclosures
Life Insurance Non-GAAP (in millions) Three Months Ended June 30, 2023 2022 reconciliations Premiums $ 443 $ 440 and other Policy fees Net investment income 371 327 390 350 financial Other income 26 30 disclosures Policyholder benefits (721) (734) Interest credited to policyholder account balances (
Slide 30: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions, except per common share data) Three Months Ended June 30, 2023 2022 reconciliations GAAP Basis and other Numerator for EPS Net income (loss) $ 751 $ 2,674 financial Less: Net income (loss) attributable to noncontrolling interests (20) 80 disclosures Net income (loss) attributa
Slide 31: Non-GAAP reconciliations and other financial disclosures
(in millions, except per share data) June 30, 2023 June 30, 2022 Non-GAAP Total Corebridge shareholders' equity (a) $ 10,561 (15,182) $ 12,251 (12,106) reconciliations Less: Accumulated other comprehensive income (AOCI) Add: Cumulative unrealized gains and losses related to Fortitude Re funds withhe
Slide 32: Non-GAAP reconciliations and other financial disclosures
Non-GAAP (in millions) Three Months Ended June 30, 2023 2022 reconciliations Individual Retirement and other Premiums Deposits $ 66 3,984 $ 60 3,566 financial Other (a) (5) (6) disclosures Premiums and deposits 4,045 3,620 Group Retirement Premiums 4 5 Deposits 1,919 1,767 (b)(c) Premiums and deposi