Corebridge Financial (CRBG) Q4 2024 earnings summary

Executive summary

• Achieved or exceeded all IPO financial goals, including Adjusted ROE of 12%-14%, payout ratio of 60%-65%, and Life Fleet RBC ratio above 400%.

• Operating EPS rose 18% year-over-year to $4.83; Adjusted ROAE increased to 12.8%; net income reached $2.2 billion.

• Premiums and deposits reached $41.7 billion in 2024, a 5% increase over 2023.

• Returned $2.3 billion to shareholders in 2024 and $4.9 billion since IPO, with an 81% payout ratio.

• Launched Bermuda affiliated reinsurance strategy, ceding $12 billion in 2024 to optimize the balance sheet.

Financial highlights

• Adjusted pre-tax operating income for 2024 was $3.61 billion, up from $3.19 billion in 2023.

• Q4 adjusted pre-tax operating income was $878 million; Q4 operating EPS was $1.23, up 18% year-over-year.

• Aggregate core sources of income reached $7.60 billion, a 4% increase year-over-year.

• General operating expenses declined 13% from 2022 to 2024.

• Life Fleet RBC ratio at 420-430%, above the >400% target; holding company liquidity at $2.2 billion.

Outlook and guidance

• Long-term annual run rate EPS growth expected in the 10%-15% range, though 2025 growth will likely be below 10% due to spread income headwinds.

• Dividends from insurance subsidiaries expected to increase 5%-10% in 2025.

• Board increased share repurchase authorization by $2 billion and raised quarterly dividend to $0.24 per share.

• Alternative investment returns expected to be 8-9% in 2025, weighted toward the second half.

• Effective tax rate projected at 20-21% before discrete items.