Corebridge Financial (CRBG) Q2 2024 earnings summary

Executive summary

• Achieved 17% year-over-year growth in premiums and deposits to $11.7 billion, with operating EPS up 9% to $1.13 and adjusted ROAE at 12.0%.

• Net income for Q2 2024 was $365 million, down from $771 million in Q2 2023, mainly due to higher realized losses.

• Returned $575 million to shareholders in Q2, with $961 million returned year-to-date and a 70% payout ratio.

• Completed sale of UK life business in April 2024, generating a $246 million pre-tax gain; proceeds to be returned via share repurchase.

• Welcoming Nippon Life as a shareholder pending regulatory approval, with transaction expected to close in Q1 2025.

Financial highlights

• Adjusted pre-tax operating income (APTOI) for Q2 2024 was $859 million, up from $836 million in Q2 2023.

• Net investment income rose to $3.0 billion, up 10% year-over-year; base yield improved to 4.82%.

• Assets under management and administration reached $394 billion, up 6% year-over-year.

• Book value per share was $18.32; adjusted book value per share was $37.95 at June 30, 2024.

• Aggregate core sources of income grew 5% year-over-year, with fee income up 8% and underwriting margin up 4%.

Outlook and guidance

• Expect continued growth in earnings and cash flows, supported by demographic trends and higher interest rates.

• Ongoing focus on capital optimization, including further Bermuda reinsurance and efficiency levers.

• Payout ratio target of 60%-65% for 2024, with UK sale proceeds as additional distribution.

• Expense reduction targeted at $400 million in annual run-rate savings through Corebridge Forward initiative.

• Anticipate marginal spread compression but continued growth in base spread income.