Corebridge Financial posts $1.2bn net loss in Q3’24

Corebridge Financial, the American multinational financial services company, has released its financial results for the third quarter of 2024, which includes a $1.2 billion net loss, compared to a gain of $2.1 billion in the prior year quarter.

According to the firm, the change was mainly due to a result of realised losses primarily driven by the Fortitude Re funds withheld embedded derivative.

Moreover, Corebridge also posted an adjusted pre-tax operating income (APTOI) of $1.0 billion, representing a 27% increase over the prior year quarter.

The firm explained that, excluding variable investment income, APTOI grew 18% over the same period primarily as a result of higher aggregate core sources of income and expense efficiencies, along with favourable one-time notable items in the current year.

In terms of investment, Corebridge posted a 24% increase in net investment income in Q3 2024, climbing to $3.3 billion, while net investment income on an APTOI basis was $2.8 billion, up 15% over the prior year quarter.

Corebridge noted that these improved figures was due in large part to higher base portfolio income, which grew $298 million, or 12%, over the prior year quarter.

The increase in base portfolio income was supplemented by variable investment income which grew $80 million over the same period, the firm added.

Moving forward, Corebridge’s premiums and deposits sat at $9.6 billion for the third quarter of 2024, representing a 5% increase over the prior year quarter.

Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions), premiums and deposits grew 20% over the same period primarily driven by an increase in fixed annuity deposits.

Kevin Hogan, President and Chief Executive Officer of Corebridge, commented: “We had a very strong quarter as Corebridge grew operating earnings per share by 31% year over year to $1.38. At the same time, we returned $848 million to shareholders through dividends and share repurchases, bringing the year-to-date payout ratio to 83%. We continue to create long-term value by leveraging our diversified business model, strong balance sheet and disciplined execution.

“Our solid fundamentals and multiple sources of income give us the flexibility to perform across different business cycles. Corebridge maintains a compelling mix of fee income, spread income and underwriting margin, with all three again increasing year over year. Additionally, we grew premiums and deposits by 5% over the prior year quarter to $9.6 billion, capitalizing on market dynamics and the benefits of our broad product suite and distribution network. Last month we initiated the largest product launch in our Company’s history, expanding on what is already one of the broadest annuity platforms in the industry with our first registered index-linked annuity, or RILA.”

He continued: “Corebridge delivered attractive business results while maintaining a strong balance sheet supported by high-quality assets and liabilities, prudent risk management, and diversification. We remain focused on executing our strategies to create shareholder value and remain confident in the growth opportunities available to our four market-leading businesses as well as our ability to generate attractive returns across multiple market environments.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.