In the Oakmark Fund's 2nd-Quarter Commentary 2024 Q2, Corebridge Financial (CRBG, Financial) was highlighted as a new purchase. Corebridge is recognized as one of the largest providers of retirement solutions and insurance products in the United States, maintaining a high market share through its extensive distribution network and long-standing relationships with financial institutions. Despite its diversified and less risky earnings profile, the market values Corebridge as a variable annuity company. The recent reduction in AIG's significant ownership stake has removed an overhang on the stock price, presenting an opportunity to invest in Corebridge at a discount to other non-variable annuity peers and the fund's estimate of intrinsic value.
"Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. Corebridge’s extensive distribution network and long-standing relationships with large financial institutions have helped it maintain a high market share position for decades. In our view, the market values Corebridge as a variable annuity company despite its more diversified and less risky earnings profile relative to peers. In addition, we believe the recent reduction in AIG's significant ownership stake removes an overhang on the stock price. The combination of these factors provided the opportunity to invest in Corebridge at a discount to other non-variable annuity peers and our estimate of intrinsic value." — Bill Nygren (Trades, Portfolio), Oakmark Fund, Q2 2024 Fund Letter
Read full letter at gurufocus Bill Nygren's Oakmark Fund 2nd-Quarter Commentary 2024 Q2 page.
