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• Adjusted ROE: Achieved 12% to 14%, with a run rate ROE improvement of over 300 basis points.

• Payout Ratio: Exceeded target with a cumulative payout ratio of 73%, returning $4.9 billion to shareholders.

• Run Rate Operating EPS: Improved by 35%, with a quarterly run rate operating EPS increase of 11% year over year to $1.28.

• Full-Year Operating EPS: Increased by 18% year over year to $4.83.

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

• Expense Reduction: Achieved $400 million in run rate savings, reducing expenses by 13% over two years.

• Fourth-Quarter Adjusted Pretax Operating Income: $878 million, with operating EPS of $1.23, an 18% increase year over year.

• Fee Income: Improved 10% year over year.

• Underwriting Margin: Improved 22% year over year.

• Base Spread Income: Declined 5% year over year.

• General Account Net Inflows: $1.6 billion in the fourth quarter, with full-year net inflows of $6.9 billion.

• Group Retirement Net Outflows: $3.5 billion in the fourth quarter.

• Life Insurance Operating Income: Increased more than 100% year over year.

• Institutional Markets Full-Year Earnings: Increased 17% year over year.

• Holding Company Liquidity: $2.2 billion at year-end.

• Life Fleet RBC Ratio: Estimated to be in the range of 420% to 430% at the end of 2024.

• Warning! GuruFocus has detected 8 Warning Signs with CRBG.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Corebridge Financial Inc (NYSE:CRBG) achieved or exceeded its financial goals, including an adjusted ROE of 12% to 14% and a payout ratio of 60% to 65%, supported by the Corebridge Forward efficiency program.

• The company reported a 35% improvement in quarterly run rate operating earnings per share, driven by earnings growth and capital management.

• Corebridge Financial Inc (NYSE:CRBG) returned $4.9 billion to shareholders since its IPO, with a cumulative payout ratio of 73%, and repurchased 14% of its outstanding shares.

• The company achieved $400 million in run rate savings ahead of schedule, reducing expenses by 13% on a comparable basis.

• Corebridge Financial Inc (NYSE:CRBG) increased full-year operating earnings per share by 18% year over year to $4.83, with a run rate ROE improvement of over 100 basis points to 13.2%.

Negative Points

• Base spread income declined by 5% due to net outflows in the Group Retirement business and changes in short-term interest rates.

• The Individual Retirement segment experienced a 7% decline in adjusted pretax operating income due to base spread compression.

• The company anticipates near-term headwinds from changes in short-term interest rates and related hedging activities.

• Corebridge Financial Inc (NYSE:CRBG) expects EPS growth to be less than 10% in 2025 due to spread pressures and other dynamics.

• The company faces potential challenges with increased surrender rates in Individual Retirement as large lots of fixed and fixed index annuities exit their surrender charge period.