Despite a 13% drop in net income compared to last year’s third quarter, executives at Corebridge Financial Inc., said Friday they were pleased with the overall results and said Corebridge’s first year as a public company was a success.
Corebridge, formed as a rebrand of AIG's life and retirement subsidiary, is one of the nation’s largest providers of retirement solutions and insurance. Though still majority-owned by AIG, it went public in September of 2022. While the value of its shares is about the same as its IPO price following a precipitous drop six months ago, the stock rebounded and soared nearly 11% this year.
Under the leadership of Kevin Hogan, president and CEO, the company said it was satisfied with the company’s achievements that included a 28% increase in premiums and deposits in the first nine months of 2023, with its base spread growing by 34% in the same period.
Hogan said in just the first year as a public company Corebridge has returned $1.4 billion in capital to its shareholders and is well on track to achieve its target run-rate savings with 81% of the goals either achieved or contracted.
'One of the best markets' for life insurers
“We are experiencing one of the best markets for life insurers in recent memory, with interest rates and levels not seen and well over a decade, supporting our ability to manufacture products that are very attractive to our customers,” Hogan said on a Friday morning call with investors. We are making the most of these favorable conditions, notably delivering healthy organic growth and our spread based products. And we have a constructive outlook for all of our businesses.”
The company reported a 28% increase in operating earnings per share (EPS) and added 230 basis points to the adjusted return on average equity. Corebridge also “unlocked” an additional $1.2 billion in shareholder value through the sale of its international operations, streamlining its focus on businesses within the U.S.
Net income was $2.1 billion for the third quarter and the drop was primarily attributed to lower realized gains. The company's annual actuarial assumption review contributed $22 million to pre-tax income in the current quarter, compared to $132 million in the prior year quarter.
Adjusted pre-tax operating income reached $813 million in the third quarter, a 29% increase compared to the previous year. Premiums and deposits for the third quarter were $9.1 billion, a 4% increase compared to the same quarter in the previous year. Group Retirement plan acquisitions, premiums and deposits grew by 3% year-over-year. The growth primarily resulted from increased fixed index annuity and fixed annuity deposits, partially offset by lower variable annuity deposits in Individual Retirement and Group Retirement.
Its net investment income, which reached $2.7 billion, marked a 23% increase compared to the previous year’s third quarter.
Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].