Corebridge reports 10% APTOI increase in Q2’25 despite net loss

Corebridge Financial, an American multinational financial services company, has announced its financial results for the second quarter of 2025, reporting an adjusted pre-tax operating income (APTOI) of $942 million despite a net loss of $660 million.

Q1 2025’s net loss compares to a gain of $365 million reported in the same period last year. Corebridge attributed this variance largely to higher realized losses this quarter compared to a gain on the divestiture of the sale of the UK business in the prior year quarter.

Corebridge’s APTOI increased 10% in Q2 2025 compared to the same period last year. Adjusted after-tax operating income stood at $750 million, and operating EPS was $1.36 per share.

Excluding variable investment income (VII), APTOI decreased 8% from the same period, largely due to the impact of cumulative changes in short-term interest rates.

Core sources of income stood at $1.8 billion in Q2 2025, a 2% decrease from the prior year quarter largely due to the cumulative short-term rate impact, partially offset by higher underwriting margin.

Premiums and deposits were $10.8 billion, a 7% decrease from the historically strong prior year quarter, the firm noted. Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions), premiums and deposits are flat year over year.

Despite the net loss, Corebridge reported holding company liquidity of $1.3 billion. $442 million were returned to shareholders, including $311 million of share repurchases, representing a 64% payout ratio for H1’25.

Corebridge’s Life Insurance business saw a 3% increase, to $22 million, on premiums and deposits. According to the firm, this was driven by growth in traditional life sales.

Underwriting margin excluding VII for Life Insurance business increased 12% over the prior year quarter, largely as a result of pricing discipline supported by our automated underwriting platform, favourable mortality experience, and improved investment yields.

Its APTOI increased $38 million, or 40%, over the prior year quarter. Excluding VII, APTOI increased 44% over the prior year quarter, mainly due to higher underwriting margin.

Kevin Hogan, President and Chief Executive Officer, commented: “Corebridge delivered another quarter with very strong financial results and remains focused on driving shareholder value, as demonstrated by our variable annuity reinsurance transaction that further positions our company for the future.

“Year over year, adjusted pre-tax operating income was up 10%, operating earnings per share were up 20%, and adjusted return on average equity was up 230 basis points. In the quarter, we returned $442 million of capital to shareholders through dividends and share repurchases.

“Our transformative reinsurance transaction is the most important value-creation action we have taken since the IPO, reducing risk, improving the quality of earnings, and driving higher distributions. As we announced today, we have closed on the AGL portion of the transaction, which represents approximately 90% of the value, and expect the remaining portions to close in the fourth quarter, subject to customary closing conditions and regulatory approvals.

“Going forward, we are positioned to drive organic growth from an even lower-risk baseline. Across our businesses, we have a broad mix of attractive products and service offerings powered by an extensive distribution network. The second quarter provided a glimpse of this opportunity, as Individual Retirement sales exceeded last year’s record second quarter and cumulative sales of our new RILA product passed $1 billion dollars just nine months after initial launch. By executing on our strategic pillars, we remain focused on growing profitably, generating ample cash, and delivering a strong payout ratio to create additional long-term shareholder value.”