Corebridge closes largest portion of variable annuity reinsurance deal with Venerable

Corebridge Financial, Inc. has announced the successful closure of the largest portion of its previously announced reinsurance agreement with Corporate Solutions Life Reinsurance Company, an insurance subsidiary of Venerable Holdings, Inc.

The transaction, which reinsures all Individual Retirement variable annuities issued by American General Life Insurance Company (AGL), marks a significant step in Corebridge’s strategy to exit the individual retirement variable annuity business and focus on other areas.

The AGL component of the deal, which became effective on August 1, 2025, represents approximately 90% of the total transaction’s value.

This includes the entire in-force book of AGL-issued Individual Retirement variable annuities, as well as an ongoing flow reinsurance agreement for new variable annuity contract issued by AGL, which has now commenced.

Additionally, as part of the AGL transaction, new Individual Retirement variable annuity contracts issued by AGL will be reinsured through an ongoing flow reinsurance agreement with Venerable.

The flow reinsurance portion of the agreement involves 100% quote share from AGL, a Texas domiciled entity, and is anticipated to initially generate approximately $1.25 billion in sales on an annual basis.

According to Corebridge, the transaction is valued at $2.8 billion, consisting of both ceding commission and capital release. Additionally, it is expected to generate approximately $2.1 billion of net proceeds after tax for it.

that delivers “significant value for Corebridge and its shareholders.”

The company plans to use the proceeds accelerate its capital management objectives, including a substantial majority being returned to shareholders through share repurchases,

A $2 billion increase to the company’s share repurchase authorization has been approved in connection with the deal.

The reinsurance transaction will add approximately $48 billion to Venerable’s assets under risk management.

Once all three parts of the agreement are finalized, Venerable’s total assets under risk management are expected to grow from $67 billion to $118 billion. This represents a 77% increase on a pro forma basis as of March 31, 2025.

“The team at Venerable continues to demonstrate unparalleled expertise in all aspects of complex insurance transactions. The successful closing of this transaction in an extremely accelerated timeframe is another clear example,” said David Marcinek, Chairman and CEO of Venerable.

He added: “We are excited to advance our growth strategy with the commencement of flow reinsurance and look forward to offering this capability more broadly as part of our suite of risk transfer solutions.”

Remaining elements of the transaction are expected to close in the fourth quarter of 2025. These include the reinsurance of Individual Retirement variable annuities issued by The United States Life Insurance Company in the City of New York (USL), a Corebridge insurance company subsidiary, as well as the sale of a related investment adviser and manager (SAAMCo).

According to the announcement, Corebridge will continue to administer the reinsured policies from AGL, which primarily comprises contracts with guaranteed minimum withdrawal benefits (GMWB), issued after 2009.

An additional block of policies with death benefits and investment-only variable annuities is also included.