Corebridge Financial Posts GAAP Loss but Strong Adjusted Earnings
On August 4, Corebridge Financial (CRBG) reported a second-quarter net loss of $16 million under GAAP accounting. However, the company's adjusted after-tax operating income reached $512 million or $1.12 per share, highlighting strong core performance despite unfavorable market-related adjustments. The improvement from last year’s $660 million loss is largely attributed to better management of fair value swings and interest credited on policyholder accounts. The Institutional Markets segment stood out with a 36% increase in core income excluding variable investment income, driven by higher guaranteed investment contract issuances. Corebridge also returned $412 million to shareholders through buybacks and dividends while maintaining strong liquidity at $1.4 billion. The company is on track to complete its merger with Equitable Holdings after shareholder approval. Despite the positive adjusted earnings, core business lines showed some pressure: individual retirement premiums dropped 41%, Group Retirement income fell by 17%, Life Insurance underwriting margins weakened, and corporate expenses increased. Total premiums across all segments declined by 13% as Corebridge shifted capital away from lower-return annuity products.
Topics: adjusted earnings GAAP loss insurance industry shareholder returns