Corebridge annuity sales slip ahead of Equitable marriage

Corebridge Financial experienced lower annuity sales in the second quarter, but leadership remains focused on its long-term growth prospects as a part of Equitable Holdings.

Total company sales declined from a year earlier, Corebridge President and CEO Marc Costantini said, but increased 13% sequentially from the first quarter. On a rolling 12-month basis, sales increased 4% year over year.

Competitive pricing pressure affected retail annuity sales early in the quarter, but conditions improved as interest rates increased, Costantini noted.

In the company's Individual Retirement segment, premiums and deposits decreased $2.7 billion, or 41%, from the prior year quarter, primarily driven by lower fixed annuity and fixed indexed annuity deposits, partially offset by higher registered indexed-linked annuity deposits.

Corebridge appealed to buyers as a powerhouse in annuity sales. The company finished third in LIMRA's final 2025 annuity sales rankings with $27.4 billion. First-quarter sales figures saw Corebridge slip to fifth, but Costantini isn't concerned.

“We ended at the quarter with June being our strongest sales month on the retail side, and we entered July with some very good momentum, and we saw that momentum continue through July,” Costantini told Wall Street analysts during a Wednesday conference call.

Equitable held its own conference call with analysts earlier Wednesday.

Corebridge deliberately shifted capital toward institutional markets during the quarter, part of a smart and disciplined financial strategy, explained Christopher Filiaggi, interim chief financial officer.

"We continue to prioritize margin integrity over volume," he said. "By adhering to our rigorous pricing growth, we have effectively pivoted our capital deployment toward higher growth areas of our portfolio that offer superior risk-adjusted returns."

Corebridge issued $1.8 billion in funding agreement-backed notes during the quarter and said its funding agreement business represents about 5% of its general account, compared with roughly 10% to 15% at some competitors, leaving room for additional growth.

The company also maintained its outlook for pension risk transfer activity to accelerate during the second half of the year.

"Nothing in this market has changed," Costantini said, citing continued demand from employers seeking to transfer pension liabilities. "Pension plans remain overfunded. The appetite for de-risking solutions remains strong, and we expect the double-digit reserve growth we've achieved since 2021 to continue."

'The right attributes to succeed'

Corebridge also reported continued growth across several business lines. Wealth management assets in its group retirement business increased 18% from a year earlier to $20 billion, while executives said there are opportunities to grow those assets by another $30 billion through IRA rollovers and deeper relationships with existing customers.

Life insurance sales rose year over year to $870 million, supported by favorable underwriting results and expanded use of automated underwriting technology. Costantini said the company's life insurance business could eventually double in size, citing a large protection gap among U.S. consumers and investments aimed at improving digital capabilities and distribution.

Executives also highlighted plans to expand the combined company's institutional business after the Equitable merger closes, including larger pension risk transfer transactions and additional funding agreement business made possible by a larger balance sheet.

Looking beyond the merger, Costantini pointed to long-term industry trends supporting growth, including rising annuity demand, an estimated $100 trillion intergenerational wealth transfer expected by mid-century, and what he described as a significant life insurance protection gap affecting roughly 100 million Americans.

The Equitable-Corebridge deal is expected to close by the end of the year, at which time the combined entity will enter 2027 with 10 million customers.

"Given the tremendous financial needs we see, our aspiration is to significantly grow that number over time," Costantini said. "We will have all the right attributes to succeed. Our scale will give us a lower cost of capital, greater efficiency, comprehensive customer solutions and the ability to invest more while attracting top talent."

Quarterly Highlights

• Group Retirement premiums and deposits decreased $207 million, or 10%, from the prior year quarter, primarily driven by lower in-plan and out-of-plan annuity deposits.
• Life Insurance premiums and deposits increased $2 million over the prior year quarter due to higher traditional life sales, partially offset by lower universal life sales.

By The Numbers

• Total Revenue: $4.3 billion ($4.1 billion in Q2 2025)
• Total Benefits and Expenses: $3.6 billion ($3.3 billion in Q2 2025)
• Earnings Per Share: Adjusted after-tax income per diluted share of $1.12 ($1.22 in Q2 2025)
• Share Repurchases: $300 million in Q2 2026
• Dividend Declared: $0.25 per share
• Stock Price Movement: Shares rose 1.2% by midday to $33.98

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.