Earnings Document
For Immediate Release İ
2022 RESULTS
Full Year Results Summary
- Net income of
$2.4 billion , compared to net income of$6.4 billion for the full year 2021. Net income of$2.91 per share, down 60 percent from the prior year. - Adjusted earnings of
$5.5 billion , compared to adjusted earnings of$8.0 billion for the full year 2021. Adjusted earnings of$6.85 per share, down 25 percent from the prior year. - Adjusted earnings, excluding total notable items, of
$5.4 billion , compared to$7.9 billion for the full year 2021. On a per share basis, adjusted earnings, excluding total notable items, of$6.72 , down 26 percent from$9.07 for the full year 2021. - Book value of
$29.81 per share, down 61 percent from$77.12 per share atDecember 31, 2021 . - Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of
$56.34 per share, down 2 percent from$57.65 per share atDecember 31, 2021 . - Retuon equity (ROE) of 6.1 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 12.3 percent.
- Holding company cash and liquid assets of
$5.4 billion atDecember 31, 2022 , which is above the target cash buffer of$3.0 -$4.0 billion .
Page 1 of 31
Fourth Quarter Results Summary
- Net income of
$1.3 billion , or$1.66 per share, compared to net income of$1.2 billion , or$1.39 per share, in the fourth quarter of 2021. - Adjusted earnings of
$1.2 billion , or$1.55 per share, compared to adjusted earnings of$1.8 billion , or$2.17 per share, in the fourth quarter of 2021. - Adjusted earnings, excluding total notable items, of
$1.2 billion , or$1.55 per share, compared to adjusted earnings, excluding total notable items, of$1.7 billion , or$2.01 per share, in the fourth quarter of 2021. - ROE of 23.6 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 11.3 percent.
Commenting on the company's results,
Page 2 of 31
Fourth Quarter and Full Year 2022 Summary
($ in millions, except per share data)
Premiums, fees and other revenuesNet investment income
Net investment gains (losses) Net derivative gains (losses)
Total revenues
Adjusted premiums, fees and other revenues
Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT)
Net income (loss)
Net income (loss) per share
Adjusted earnings
Adjusted earnings per share
Adjusted earnings, excluding total notable items
Adjusted earnings, excluding total notable items per share
Book value per share
Book value per share, excluding AOCI other than FCTA
Expense ratio
Direct expense ratio, excluding totalnotable items related to direct expenses and PRT
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT
ROE
Adjusted ROE, excluding AOCI other than FCTA
Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA)
|
Three months ended |
Year ended |
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|
|
||||||||||||||||
|
2022 |
2021 |
Change |
2022 |
2021 |
Change |
||||||||||||
|
|
|
(25)% |
|
|
14% |
||||||||||||
|
4,464 |
5,233 |
(15)% |
15,916 |
21,395 |
(26)% |
||||||||||||
|
355 |
(126) |
(1,262) |
1,529 |
||||||||||||||
|
162 |
(196) |
(2,372) |
(2,228) |
||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
|
(25)% |
|
|
17% |
||||||||||||
|
|
|
(1)% |
|
|
(1)% |
||||||||||||
|
|
|
12% |
|
|
(63)% |
||||||||||||
|
$ |
1.66 |
$ |
1.39 |
19% |
$ |
2.91 |
$ |
7.31 |
(60)% |
||||||||
|
|
|
(33)% |
|
|
(30)% |
||||||||||||
|
$ |
1.55 |
$ |
2.17 |
(29)% |
$ |
6.85 |
$ |
9.15 |
(25)% |
||||||||
|
|
|
(28)% |
|
|
(31)% |
||||||||||||
|
$ |
1.55 |
$ |
2.01 |
(23)% |
$ |
6.72 |
$ |
9.07 |
(26)% |
||||||||
|
|
|
(61)% |
|
|
(61)% |
||||||||||||
|
|
|
(2)% |
|
|
(2)% |
||||||||||||
|
21.3 % |
16.1 % |
16.0 % |
18.2 % |
||||||||||||||
|
13.1 % |
12.9 % |
12.2 % |
11.6 % |
||||||||||||||
|
20.7 % |
20.4 % |
19.8 % |
19.3 % |
||||||||||||||
|
23.6 % |
7.3 % |
6.1 % |
9.7 % |
||||||||||||||
|
11.3 |
% |
15.3 % |
12.3 % |
16.6 % |
|||||||||||||
|
11.3 |
% |
14.2 % |
12.1 % |
16.5 % |
|||||||||||||
Page 3 of 31
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP and Other Financial Disclosures" below and in the tables that accompany this news release.
Supplemental slides for the fourth quarter of 2022, titled "4Q22 Supplemental Slides and Outlook," are available on the
Total Company Discussion
Net investment income was
Net derivative gains amounted to
Net income was
Page 4 of 31
Adjusted Earnings by Segment Summary*
|
Three months ended |
Year ended |
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|
|
|
|||
|
Change from |
Change from |
|||
|
prior-year |
||||
|
period (on a |
prior-year (on a |
|||
|
constant |
constant |
|||
|
Change from |
currency |
Change from |
currency |
|
|
Segment |
prior-year period |
basis) |
prior-year |
basis) |
|
|
20% |
(7)% |
||
|
|
(63)% |
(62)% |
(40)% |
(38)% |
|
|
45% |
51% |
162% |
201% |
|
|
67% |
112% |
(18)% |
-% |
|
|
||||
|
|
(57)% |
(55)% |
- The percentages in this table are on a reported and constant currency basis, and do not exclude notable items.
Business Discussions
All comparisons of the results for the fourth quarter of 2022 in the business discussions that follow are with the fourth quarter of 2021, unless otherwise noted. There were no notable items in the fourth quarter of 2022, as indicated in the notable items table which follows the Business Discussions section of this release.
|
Three months ended |
Three months ended |
||
|
($ in millions) |
|
|
Change |
|
Adjusted earnings |
|
|
20% |
|
Adjusted premiums, fees and other |
|
|
(34)% |
|
revenues |
|||
|
Adjusted premiums, fees and other |
|
|
3% |
|
revenues, excluding PRT |
|||
|
Notable item(s) |
|
|
|
- Adjusted earnings were
$771 million , up 20 percent, primarily driven by favorable underwriting and volume growth, partially offset by lower variable investment income. - Adjusted retuon allocated equity was 27.0 percent, and adjusted retuon allocated tangible equity was 36.2 percent.
- Adjusted premiums, fees and other revenues were
$6.7 billion , down 34 percent, primarily driven by higher pension risk transfer sales in the prior-year period.
Page 5 of 31
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