Corebridge Financial Inc. · NYSE:CRBG
Corebridge Financial — Q1 2024 Earnings Presentation
30 slides from Corebridge Financial's earnings presentation, May 3, 2024
Slide 1: First Quarter 2024 Financial Results Presentation
First Quarter 2024 Financial Results Presentation May 3, 2024
Slide 2: Highlights for first quarter 2024
Highlights for first quarter 2024 Generated strong business results • Diversified businesses delivered $688 million of adjusted after-tax operating income1, up 9% year over year, and Operating EPS1 of $1.10, up 13% • Focused execution drove adjusted return on average equity1 to 11.9%, up 110 basis p
Slide 3: Financial results reflect focused execution
Financial results reflect focused execution Adjusted return on average equity 1Q24 1Q23 10.8% APTOI Operating +150 bps ($M) EPS ($) excluding VII & notable items Investments 78 0.10 1Q24 11.9% Reinsurance (30) (0.04) Notable items 48 0.06 Operating EPS ($) Alternative investments returns versus long
Slide 4: Diversified sources of income
Diversified sources of income Spread Income1,2,3 ($M) Fee Income1,2 ($M) Underwriting Margin1,2,3($M) +7% +9% -7% excluding VII & notable items excluding notable items excluding VII, notable items & international life business 1,019 918 3 28 513 469 1,016 373 890 48 315 33 469 513 325 283 -1 1Q23 1Q
Slide 5: Asset growth drives higher spread and fee income
Asset growth drives higher spread and fee income Assets under management and administration1 ($B) Separate account returns 393 368 7.4% 88 5.3% 86 +7% total 95 87 AUMA 1Q23 1Q24 195 210 New money versus roll off yields2 1Q23 1Q24 7 7 General account Separate account Assets under administration 6.5%
Slide 6: Consistent insurance company distributions enable active capital management
Consistent insurance company distributions enable active capital management Insurance company distributions ($M) Capital and liquidity highlights 600 • Insurance companies generated strong cash flows while 500 500 527 500 maintaining Life Fleet RBC ratio above target • Returned $386 million of capit
Slide 7: Individual Retirement
Individual Retirement Sources of income1 ($M) First quarter highlights 1,020 Earnings growth driven by strong sales and attractive margins 900 4 5 307 • Base spread income excluding notable items grew 7% year over year supported by 277 higher new money yields and higher general account assets +8% •
Slide 8: Group Retirement
Group Retirement Sources of income1 ($M) First quarter highlights 389 390 Consistent earnings with balanced sources of income 9 1 • Fee income increased 8% year over year driven by equity market performance and 176 190 expansion of advisory and brokerage business —% • Premiums and deposits excluding
Slide 9: Life Insurance
Life Insurance Sources of income1 ($M) First quarter highlights Notable items impacted results 356 48 297 • Underwriting margin decreased 7% from prior year quarter primarily due to Universal 33 Life seasonal mortality. Overall mortality experience, inclusive of reserve impacts, was -7% consistent w
Slide 10: Institutional Markets
Institutional Markets Sources of income1 ($M) First quarter highlights 140 Earnings growth driven by new business 115 18 16 • Base spread income excluding notable items increased 38% year over year supported 14 by growth in pension risk transfer and guaranteed investment contract reserves 17 +24% 16
Slide 11: Appendix
Appendix 11
Slide 12: High-quality, well-diversified investment portfolio
High-quality, well-diversified investment portfolio 3% 2%2% 5% Government obligations 15% Public corporate debt • Liability driven investment strategy supported by Private corporate debt disciplined asset-liability management process RMBS CMBS 35% 4% 1,2 CLO • Diversified across asset class, sector,
Slide 13: Notable items
Notable items ($ in millions, except per share data) 1Q24 Notable Items Alternative investments Business segment returns versus long-term Total adjustments Investments All other return expectations Individual Retirement 45 — (46) (1) Group Retirement 8 — (27) (19) Life Insurance 8 (30) (11) (33) Ins
Slide 14: Notable items
Notable items ($ in millions, except per share data) 4Q23 Notable items Alternative investments Business segment returns versus long-term Total adjustments Investments All other return expectations Individual Retirement 35 — (50) (15) Group Retirement 5 — (22) (17) Life Insurance 5 — (13) (8) Instit
Slide 15: 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 Exclude
Slide 16: Explanation of footnotes
Explanation of footnotes Page 1 1Q24 includes notable items of $8 million in spread income 8 1 1Q24 includes notable items of ($22) million in underwriting margin Page 2 Continuous payment premium equivalent (CPPE) basis. Included periodic premiums from new business expected to be collected over a o
Slide 17: 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 18: 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 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 SEC rules
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 March 31, 2024 2023 Total Tax Non- Total Tax Non- Pre-tax (Benefit) controlling After Tax Pre-tax (Benefit) contro
Slide 25: 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 $ 41 $ 5 $ 434 $ 1,796 $ 19 $ — $ 2,295 Policy fees
Slide 26: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Sources of income Three Months Ended March 31, (in millions) 2024 2023 Premiums $ 434 $ 425 Policy fees 368 375 Net investment income 326 317 Life Insurance Other income — 29 Policyholder benefits (748) (708) Interest credited to policyholder
Slide 27: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Sources of income Three Months Ended March 31, (in millions) 2024 2023 Individual Retirement Spread income $ 713 $ 623 Fee income 307 277 Total Individual Retirement 1,020 900 Group Retirement Spread income 200 213 Fee income 190 176 Total Gro
Slide 28: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Operating earnings per share Three Months Ended March 31, (in millions, except per common share data) 2024 2023 GAAP Basis Numerator for EPS Net income (loss) $ 827 $ (453) Less: Net income (loss) attributable to noncontrolling interests (51)
Slide 29: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Adjusted return on average equity Three Months Ended March 31, (in millions, unless otherwise noted) 2024 2023 Actual or annualized net income (loss) attributable to Corebridge shareholders (a) $ 3,512 $ (1,836) Actual or annualized adjusted a
Slide 30: Non-GAAP reconciliations and other financial disclosures
Non-GAAP reconciliations and other financial disclosures Premiums and deposits Three Months Ended March 31, (in millions) 2024 2023 Individual Retirement Premiums $ 41 $ 78 Deposits 4,822 4,807 (1) Other (2) (2) Premiums and deposits 4,861 4,883 Group Retirement Premiums 5 6 Deposits 2,049 2,240 Pre