Corebridge Financial reports hike in net income for Q4 & FY’24 at $2.2bn

Corebridge Financial, the American multinational financial services company, has reported 2024 fourth-quarter net income of $2.2 billion compared to a loss of $1.3 billion in the prior year’s quarter, as the firm’s full-year 2024 net income rose to $2.2 billion from $1.1 billion in 2023.

Corebridge explained that the variance was largely due to favourable changes in net realised gains, including the Fortitude Re funds withheld embedded derivative for both periods.

For FY 2024, the firm completed its annual actuarial assumption review during the third quarter which decreased pre-tax income by $79 million in the current year compared to a $22 million increase in the prior year.

Corebridge’s adjusted pre-tax operating income (APTOI) for Q4 2024 was $878 million, a 7% increase over Q4 2023’s $820 million. For FY 2024, APTOI was $3.6 billion, a 13% increase over FY 2023’s $3.1 billion.

Excluding variable investment income, notable items and the international businesses, APTOI increased 7% year on year and 3% quarter over quarter largely due to growth in aggregate core sources of income coupled with lower expenses. The annual actuarial assumption review decreased FY 2024’s APTOI by $3 million in the current year compared to a $22 million increase in the prior year, explains the firm.

For Q4 2024, the firm reported aggregate core sources of income of $1.8 billion, a 2% decrease largely due to the sale of its international businesses and favourable notable items in 2023. Excluding this and notable items, core sources of income increased 4% from Q4 2023 due to higher fee income and underwriting margin.

Taking a look at FY 2024, the aggregate core sources of income were $7.3 billion, a 3% increase. There was a 4% increase from last year due to higher base spread income, fee income and underwriting margin.

Finally, Corebridge’s premiums and deposits for Q4 2024 were $9.9 billion, a 6% decrease from an exceptional prior-year quarter reporting of $10.4 billion. Excluding transactional activity and the sale of international businesses, there was an 8% decrease from Q4 2023 primarily driven by lower fixed annuity deposits partially offset by higher fixed index annuity deposits in line with broader market trends.

For FY 2024, premiums and deposits were $41.7 billion, a 5% increase over the prior year’s $39.9 billion. There was a 14% increase year-on-year due to higher fixed annuity deposits.

Corebridge, in Q4 2024, returned $527 million to shareholders, including $398 million of share repurchases and for the FY 2024, the number stands at $2.3 billion, with an 81% payout ratio, including $1.8 billion of share repurchases.

Kevin Hogan, President and Chief Executive Officer, said, “I am pleased to report strong performance for Corebridge, as we generated full-year top-line and earnings growth with premiums and deposits of $41.7 billion and operating earnings per share of $4.83, an 18% increase year over year.

“Additionally, our U.S. insurance subsidiaries increased full-year dividends by 10%, distributing $2.2 billion to the holding company. Organic growth, balance sheet optimization, expense efficiencies and active capital management were fundamental to this success, and we will continue to build on these strategic pillars to drive further growth and shareholder value.

“This week, the Board of Directors increased our existing share repurchase authorization by $2 billion and increased our quarterly dividend to $0.24 per share, reflecting their confidence in our value proposition and financial strength. Looking forward, we see ongoing opportunities to extend our positive momentum, powered by our strategic differentiators and supported by favourable market dynamics. Our diversified business model, strong balance sheet and disciplined execution will continue to be key drivers, and the fundamentals of Corebridge remain compelling.”

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