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Adjusted After-Tax Operating Income: $688 million
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Operating Earnings Per Share: $1.10, up 13% year-over-year
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Adjusted Return on Average Equity: 11.9%, a 110 basis point improvement over the prior year
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Run Rate Return on Equity: 13.1%
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Base Spread Income Growth: 14% year-over-year
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Fee Income Growth: 9% year-over-year
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Assets Under Management and Administration: $393 billion, up 7% year-over-year
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Annual Cash Flows: Over $2 billion
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Premiums and Deposits: $10.6 billion in Q1, $50 billion over the last 5 quarters
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Share Repurchase Authorization: Increased by $2 billion
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Adjusted Pretax Operating Income: $837 million
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Net Investment Income: Improved 16% year-over-year
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General Operating Expenses: $411 million, improved by 10% year-over-year
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Holding Company Liquidity: Ended the quarter with $1.7 billion
Release Date: May 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Corebridge Financial Inc reported a strong start to the year with a 13% increase in adjusted after-tax operating income, reaching $688 million.
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Adjusted return on average equity improved by 110 basis points over the prior year quarter to 11.9%, aligning solidly within the target range of 12% to 14%.
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Assets under management and administration grew to $393 billion, a 7% improvement year-over-year, enhancing the company's earnings potential.
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Corebridge Financial Inc achieved $10.6 billion of premiums and deposits in the first quarter, demonstrating robust sales volume and market demand.
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The company successfully completed its modernization program, Corebridge Forward, realizing full $400 million of run rate savings, which positions it for continuous improvement and efficiency.
Negative Points
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Underwriting margin was impacted by one-time reinsurance-related items and seasonal mortality, although overall mortality remains within expectations.
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Variable investment income declined year-over-year due to losses in alternative investments, particularly from mark-to-market losses in real estate equity.
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The company noted potential for further marginal compression in base net investment spread in the near term, particularly in individual retirement.
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Life Insurance segment reported a 6% decrease in adjusted pretax operating income year-over-year after excluding variable investment income and notable items.
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Despite strong financial performance, there remains uncertainty in investment returns, particularly with continued negative real estate equity returns expected in the near future.