Corebridge Financial sees $353m net income in Q2 2024

Corebridge Financial, an American multinational financial services company, reported a net income of $365 million for the second quarter of 2024, down from $771 million in the same quarter last year.

The firm attributed this change primarily to higher net realised losses stemming from asset optimisation activities.

The company also reported an adjusted pre-tax operating income (APTOI) of $859 million, marking a 3% increase from the prior year. When excluding variable investment income, APTOI rose by 9%, primarily due to higher aggregate core sources of income and expense efficiencies.

Premiums and deposits for the quarter reached $11.7 billion, a 17% increase from the same period last year. Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions), premiums and deposits saw a 37% growth, mainly driven by an increase in fixed annuities.

Broken down by segments, Individual Retirement’s APTOI increased to $621 million from $574 million last year. Group Retirement slightly declined to $195 million from $197 million. Life Insurance saw an increase to $95 million from $76 million, while Institutional Markets declined to $96 million from $126 million. In Corporate and Other, the loss widened from $137 million in 2023 to $148 million.

Net investment income and net investment income on an APTOI basis in Q2 2024 both rose by 10% compared to the previous year, amounting to $3 billion and $2.7 billion, respectively. This improvement is credited to a 12% growth in base portfolio income, which reached $283 million. However, this gain was partially offset by a $42 million, or 44%, decline in variable investment income.

Kevin Hogan, President and Chief Executive Officer of Corebridge, remarked, “This was another excellent quarter for Corebridge where our diversified business model, strong balance sheet and disciplined execution drove positive results. We continue to create shareholder value as demonstrated by the growth in our earnings and cash generation.

“Corebridge delivered operating earnings per share of $1.13, a 9% increase year over year. Our four market-leading businesses produced $11.7 billion of premiums and deposits, the highest in over a decade, reflecting strong customer demand and the benefits of our broad product suite and extensive distribution platform. We continue to grow aggregate core sources of income with our ability to deploy resources where customer demand is the greatest and risk-adjusted returns are the most attractive.

“For the quarter, we returned $575 million to shareholders, totaling $961 million returned for the first half of the year, the equivalent of a 70% payout ratio. Along with this positive momentum, Corebridge remains committed to helping individuals take action to plan, save for and achieve secure financial futures.”

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