On May 3, 2024, Corebridge Financial Inc (CRBG, Financial) released its 8-K filing, announcing robust first-quarter results for the period ending March 31, 2024. The company reported a significant turnaround with a net income of $878 million, or $1.41 per share, a stark contrast to the net loss of $459 million, or $0.70 per share, in the same period last year. These figures surpass the analyst estimates which projected earnings of $1.05 per share and a net income of $650.22 million. Additionally, Corebridge's revenue also exceeded expectations, with reported premiums and deposits reaching $10.6 billion against an estimated $5,440.13 million.
Corebridge Financial Inc, headquartered in Houston, is a leading provider of retirement solutions and insurance products in the United States. The company operates through five segments: Individual Retirement, Group Retirement, Life Insurance, Institutional Markets businesses, Corporate and Other, with the majority of its revenue stemming from the Individual Retirement segment.
Strategic and Financial Highlights
The company's financial strength was further underscored by an 18% growth in base portfolio income for its insurance operating businesses, and a 50 basis point expansion in base yield compared to the prior year's quarter. Corebridge also successfully completed its modernization program, "Corebridge Forward," achieving significant cost savings ahead of schedule. Additionally, the sale of its UK life insurance business to Aviva plc on April 8, 2024, bolstered its financial position, contributing to a $2 billion increase in its share repurchase program authorized by the Board of Directors.
President and CEO Kevin Hogan highlighted the diversified business model's role in driving multiple income sources, leading to consistent cash flow generation and attractive shareholder returns. He noted, "We grew our earnings by pursuing profitable organic growth with focused execution, and leveraging our broad product suite and distribution platform to help meet the needs of an aging U.S. population."
Operational Excellence and Market Adaptation
Corebridge's operational strategy has been finely tuned to adapt to market demands and economic conditions. The company's disciplined approach to expense management, combined with strategic asset allocation, has enabled it to maintain a robust balance sheet and liquidity position. As of March 31, 2024, Corebridge reported holding company liquidity of $1.7 billion and a financial leverage ratio of 28.1%, with the Life Fleet RBC Ratio remaining above target.
The company's commitment to shareholder returns was evident with $386 million returned to shareholders, including $243 million through share repurchases and $143 million in dividends. The declared quarterly dividend of $0.23 per share of common stock further reflects the company's strong financial health and confidence in its future performance.
Looking Forward
Looking ahead, Corebridge Financial Inc remains focused on growth and value creation. The company plans to continue leveraging its strong market position and comprehensive product offerings to meet the evolving needs of its customers, while also maintaining rigorous risk management and operational efficiency. With a solid start to 2024, Corebridge is well-positioned to sustain its momentum and deliver long-term value to its shareholders.
For more detailed information on Corebridge Financial's first quarter performance and future outlook, investors and interested parties are encouraged to review the full earnings report and listen to the earnings call scheduled for May 3, 2024, at 8:30 a.m. EDT.
Explore the complete 8-K earnings release (here) from Corebridge Financial Inc for further details.
