Corebridge Financial (CRBG) Q3 2024 earnings summary

Executive summary

• Operating EPS rose 31% year-over-year to $1.38, with adjusted ROAE up to 14.7% and strong performance across diversified business segments.

• Reported a net loss of $1.2 billion for Q3 2024, mainly due to realized losses from Fortitude Re, despite higher net investment income and improved operating results.

• Premiums and deposits reached $9.6 billion, up 5% year-over-year, with Individual Retirement premiums and deposits up 40% to $5.5 billion.

• $848 million returned to shareholders in Q3, with a year-to-date payout ratio of 83%.

• Launched the first registered index-linked annuity (RILA), the largest product launch in company history.

Financial highlights

• Adjusted pre-tax operating income was $1.0 billion for Q3 2024, up 27% year-over-year.

• Net investment income increased to $3.3 billion, up 24% year-over-year.

• Aggregate core sources of income grew 4% year-over-year, with fee income up 11% and underwriting margin up 4%.

• Adjusted book value per share was $37.32 at September 30, 2024.

• Life Fleet RBC ratio remained above target, and holding company liquidity was $2.0 billion.

Outlook and guidance

• Management expects continued volatility in net income due to Fortitude Re accounting, but minimal impact to comprehensive income.

• Focus on long-term EPS and cash flow growth, product innovation, and expense efficiencies.

• Ongoing Corebridge Forward initiative targets $400 million in annual run-rate savings.

• Anticipate some short-term pressure on Spread Income from Fed rate cuts, but long-term growth expected.

• Seasonality in net flows and expenses expected in Q4, with alternative investment returns projected between Q2 and Q3 levels.