Corebridge Financial, an American multinational financial services company, has announced its financial results for the first quarter of 2025, reporting $649 million in adjusted after-tax operating income despite a net loss of $664 million.<\/p>\n
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Q1 2025\u2019s net loss compares to a gain of $878 million reported in the same period last year. Corebridge attributed this variance largely to higher realized losses, including the Fortitude Re funds withheld embedded derivative, and an unfavorable change in the fair value of market risk benefits.<\/p>\n
According to the firm, these impacts were partially offset by higher net investment income.<\/p>\n
Adjusted pre-tax operating income (APTOI) reached $810 million, a 3% decrease from the prior year quarter. Excluding variable investment income (VII), notable items and the international businesses, APTOI decreased 10% year-over-year.<\/p>\n
Corebridge noted that this was due to the impact of changes in short-term interest rates and higher interest expense driven by the pre-funding of the April 2025 debt maturity.<\/p>\n
Adjusted after-tax operating income stood at $649 million and operating EPS of $1.16 per share.<\/p>\n Core sources of income, excluding notable items and the international businesses, increased 1% over the prior year quarter, driven by higher fee income and underwriting margin, partially offset by lower base spread income.<\/p>\n Overall, core sources of income was $1.8 billion, a 3% decrease from the prior year quarter largely due to the sale of our international businesses and more favorable notable items in 2024.<\/p>\n Despite the net loss, Corebridge reported strong holding company liquidity, which stood at $2.4 billion. $454 million were returned to shareholders, including $321 million of share repurchases.<\/p>\n Premiums and deposits saw a 12% decrease, to $9.3 billion, compared to the historically strong prior year quarter of $10.5 billion. Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions) and the sale of the international businesses, premiums and deposits decreased 6%.<\/p>\n The decrease in premiums and deposits was mainly due to lower fixed annuity deposits partially offset by higher fixed index annuity and registered index-linked annuity (RILA) deposits.<\/p>\n Corebridge\u2019s Life Insurance business saw its premiums and deposits decreased $238 million, or 22%, from the prior year quarter driven by the sale of the international life business.<\/p>\n Underwriting margin excluding VII in Q1 2025 increased 8% over the prior year quarter, and excluding notable items and the sale of the international businesses, it increased 11% over the same period largely as a result of more favorable mortality experience.<\/p>\n APTOI for the Line Insurance business increased $54 million, or 100%, over the prior year quarter. Excluding VII, notable items and the sale of the international businesses, APTOI increased 23% over the prior year quarter mainly due to higher underwriting margin.<\/p>\n Kevin Hogan, President and Chief Executive Officer, said: “Corebridge generated strong earnings and delivered attractive capital return over the first quarter, executing on our strategic priorities. Our capital, liquidity and financial flexibility position us well to navigate the current environment.<\/p>\n “We reported operating earnings per share of $1.16, a 5% increase year over year, reflecting the benefits of our diversified business model, strong balance sheet and disciplined execution. We also returned $454 million of capital to shareholders, increasing 18% year over year and equating to a 70% payout ratio.<\/p>\n “Corebridge has a long track record of delivering on our commitments, and we remain steadfastly focused on creating significant value for our shareholders and clients. At times like this, when conditions are uncertain, our mission statement – to proudly partner with individuals, financial professionals and institutions to make it possible for more people to take action in their financial lives – becomes more relevant than ever.”<\/p>\n The post Corebridge Financial reports strong operating income despite net loss in Q1\u201925<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Corebridge Financial, an American multinational financial services company, has announced its financial results for the first quarter of 2025, reporting $649 million in adjusted after-tax operating income despite a net loss of $664 million. Q1 2025\u2019s net loss compares to a gain of $878 million reported in the same period last year. Corebridge attributed this […]<\/p>\n","protected":false},"author":1,"featured_media":3855,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3853"}],"collection":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=3853"}],"version-history":[{"count":3,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3853\/revisions"}],"predecessor-version":[{"id":3857,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3853\/revisions\/3857"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/3855"}],"wp:attachment":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=3853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=3853"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=3853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"http:\/\/calebdewey.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
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