But Thank like I portfolio, key provide a additional I’d office LDTI. metrics you, comments on as of make our mortgage comment loan portfolio. as performance the well first, information our Kevin. within on results to financial exposure on investment commercial including will couple and
week, results Last XXXX restated for LDTI. released XXXX we and our
minimizing That book of as volatility value At said, by LDTI of same capital variability As our $X and experience. the adjusted to operating conditions our billion. and we from not billion mortality being previously in reduce XX, does our increased impact market December said, LDTI the economics $XX.X we results cash to XXXX expect time, in impact our by approximately statutory the flows. LDTI nor business
financial results. Turning to our
Kevin we income. growing first driven As by noted, strong base quarter spread results had
below returns was was long-term to EPS and $XXX $X.XX, ROE that notable offset adjusted item million. our This a $X.XX includes XX.X%, operating was and was by expectations EPS pre-tax alternative operating by adjusted investment contributed Our income $X.XX. our our
been the items, EPS have these operating our for $X.XX. for Adjusting would quarter
book In LDTI. from have the XX% our adjusted even exceeded value This XXXX. would achieving of adjusted XX% in making demonstrates to addition, target progress towards our ROE XX% we’re the with higher
to to $XXX as resulting million investment over issued With decline due accounted third million interest $XX the lower prior additional variable which of in pre-tax results were quarters from financial the respect below of operating the year income, debt expense $XXX million adjusted well and for our income, second of XXXX. as
experience. base the income, improved largely adjusted spread investment of variable than increasing quarter XX% higher to operating and first was income XXXX, Excluding mortality pre-tax due income
the adjusted fourth reported income was our operating than quarter. $XX million higher Sequentially, pre-tax
investment in million variable offset income, $XX higher, quarter. adjusted largely base to by due favorable pre-tax spread non-recurring Excluding of the fourth X% was income, income operating partially increasing items
XX%, and fee margins, underwriting aggregate in driven income Our core base in improvement growth by by sources of partially in increased income. spread offset income by lower
significant up as consecutive Shifting as the of the money income. and resets was reinvestment total driven basis at invested higher in new increase quarter quarter, was This on X.XX% by assets points floating Base well rate activity assets. yield to XX investment year-on-year. in net combination rates of third fourth an a growth,
basis yields XX yields the outweighed Stripping investment money points this improved sequential on item points higher net on quarter, far which rates. assets increase in XXX portfolio. the new our of a quarter, crediting approximately X.X% out in yield policyholder were average than last basis fourth from rolling improvement In base basis. out aggregate, notable the income Average in was base any
expenses. Moving to
as benefits our as savings quarter Forward seasonality declined in Corebridge capabilities the first related compensation well establishment regular X% incremental our costs to of offset standalone sequentially. GOE The by and of earning expense. Our were
rose points investment expansion XX basis will about income speak pre-tax an an quarter, increase I for Retirement excluding reported investment and our XX% spreads sequentially. income. and increased variable or over XX% year-over-year year-over-year points growth million the of driven base basis prior of the general increase after briefly while $XXX Individual in account segment spread adjusted operating year, income XX% products, by Base net spread XX results. Next, of
declined valuations due asset income relative in portfolio. Fee fourth variable reflecting quarter, our XX% by to was net Fee asset annuity the lower income stabilization outflows flat and values. to in
account at the quarter, Group of decrease general million net in despite pre-tax $XXX positive X% of up XX% mentioned, million surrender or billion, excluding adjusted reported approximately Kevin investment income. for $X.X variable nearly from an were an As increase $XXX income rates. last year-over-year operating increase flows quarter, a of after Retirement
to outflows. income due expansion, due lower XXXX spread valuations from and XX% XX% Base to year-over-year declined fee grew net asset while the income quarter of first spread
rates growth more investment driven of to product basis points sequentially. sequential net funds, decline decreased than in points and on basis This to sequential products. yield. basis higher year-over-year, cost spread Base largely is points in the in-force rise quarter attributed certain X increased fixed crediting increase annual but XX resets XX offset out-of-plan annuity based by The base
higher buckets. see the quarters, in previous concentrated we continue with GMIR Consistent to outflows
the over We expect trend the profitability of this business time. to improve
next we the planned net due will projections Looking net additional account. losses, for but limited at – general impact quarter, will to outflows with flows expect increase to
from are are plans vary COVID losses put a losses and from activity, more reminder, general seeing a as Also, bit. to plan we’re both quarter-to-quarter. a in and acquisitions acquisitions pandemic sponsors willing and moves pickup As plan plan nonlinear out endemic and to
and decrease a investment adjusted income. reported $XX excluding of portfolio an excluding improved quarter, variable income. year-over-year variable for Insurance base Underwriting improved to operating or Life experience X% due XX% after million increase year-over-year of margin, of investment XXX% income, mortality income higher pre-tax the
products given actual the largely is by LDTI, offset With term experience of single be life mortality earnings in in any period. adoption releases traditional reserve for muted operating that will variability like
accounting However, is for that’s LDTI not case the favorable the experience and our as by was life universal in first the impacted quarter. not where
income. of operating variable an Institutional increase million Markets of for X% reported of investment year-over-year or a XX% adjusted pre-tax the income $XX excluding after quarter, decrease
X% income, business on while Risk grew expanded XX% Transfer basis. our income of original an over the for base spread sources prior Core to discount year-over-year due year, Pension largely reserves
reported with our given as $XXX of and Other the standalone Corporate company segment This lastly, million And quarter. our as consistent is well loss expectations capital parent structure. a expenses largely our loss for new
We will risk lenses, now and measures, comments overall profile. our very capital. some financial balance limited including but and capital assess provide strong. not our is different I of each liquidity, our and these sheet, healthy liquidity sheet about through By the balance to, sheet balance leverage,
book value down was non-operating or was The $XX.X quarter. sequential $XX.XX X% Adjusted X% fourth decline up due but from share, billion the mark-to-market per to year-over-year, losses.
our ratio is well leverage target was XX.X%, which within financial Our range.
XXXX. a in $X.X reminder, delever We a expect the the over fourth billion, next to in time liquidity quarter. of as of quarter value maturity as holding growth. with book ended debt increase will continue $X.X sheet billion balance is an from And the company result We that naturally our
distributed insurance our million. We first million paid of declared $XXX approximately shareholders which bringing the to will be for shareholders paid $XXX And the paid as XX. dividend $XXX noted, companies to on quarter. Our XXXX, since the the of quarter second million, to during IPO we dividends June total our Kevin approximately
the Life strong. XXX%. XXX% Our Fleet Fleet be RBC Life to XXX% We ratio our year-end of range estimate and RBC quarter in RBC our ratio remains exceeding to ratio very of first
backed and investment by a Next, that’s monitoring Portfolio our balance I and processes protect managed. about to is management few the designed minutes sheet. high-quality, spend underwriting, talking construction optimize a well-diversified risk portfolio. rigorous investment Corebridge actively will credit has portfolio
our value of general of rated $XXX XX% GAAP-carrying portfolio March as our income investments The account grade. was Approximately of investment were XX, billion fixed investment XXXX.
derisking the part billion, Our figure than in NAIC due that that’s of lower XXXX, earlier. X investments the Kevin approximately were to $XXX actions described X million a $X.X end to
strategy, turning rigorous approach is mortgage to underwriting actively insurance loans. by commercial managed Now our portfolio mortgage risk commercial support our broader and and management. to Like investment well-diversified backed It’s disciplined loan our liabilities. high-quality, to a and
In addition, on the updated are an basis. the of underlying valuations annual properties
These longer-dated, As assets. service covenant $XX.X XX% underwritten carefully loans of loan total of our with invested XX, loans up billion, rated, is LTVs primarily strong first-lien debt coverage was making March embedded protections. with fixed-rate are Each and portfolio low highly ratios.
our portfolio nearly both comprised with is portfolio industrial and Our over these bias to by sector, last diversified strong geography and of multifamily XX% of sectors reflecting decade. property, the the
$X.X of loans mortgage X% as Commercial loans or of assets billion covenant-heavy secured by carefully invested XX. These characteristics. office credit strong high-quality, are properties and with March were also total underwritten
multifamily, several the and reducing actively in office Over industrial office nontraditional sectors years, and as exposure past as well Europe. our we’ve been emphasizing to properties other
U.S. evolving this its view, exposure office As to part from is traditional of peak. our down
life is stronger office of is ground leases fundamentals approximately mixed-use in sciences, where was The the well The U.S. international than traditional portfolio U.S. XX, which assets. properties our and total invested as the component remainder as portfolio as office are March in X% $X.X the of billion of properties
of is strong XX% Our The office XX% and which of loans with major times. A in with credit longer-dated in million. debt or the our districts. It’s XX% it’s CMX together ratio delinquent It of has are weighted loan-to-value is remaining the fixed outstanding two almost average loans central has rate. balance loan and ratios X.X high-quality highly average It are XX% an $X service as of property with term of average are and mid-XXs. designated portfolio areas only carrying loans weighted fixed in enjoys business X the metropolitan the follows: coverage concentrated a consisting over metrics, the of years strong properties weighted Class CMX. of – rated loans occupancy
have in time prior history, all we our time location. sponsor Over portfolio, comfortable to felt the loans office traditional to million, three we XXXX. $XXX have our we fundamentals, originated with where loans U.S. large of from and Within excess originated very
carefully, The building-specific, to crucial the it’s of evaluate properties are very loan. each the no office size so matter property
secured total traditional X% Of office invested with $X.X date a XXXX. in billion, that million that of billion We have by figure U.S. $X.X dates less final XXXX, have $XXX assets. represents properties approximately XXXX final maturity approximately than a and our in loans maturity of
half we the As resolved or of May payoffs XXXX almost X, of have through maturities either extensions.
through X% coverage Our properties One-third extensions traditional tenure maturities resolved XX%. York million City, about ratios occupancies City. for U.S. is longer dated or invested of extremely office exposure remaining $XXX New occupancy are payoffs total and we million been solid maturities York debt New already the within have $XXX strong XXXX, and these either where service assets. rates approximately longer have [XXXX] Of the with loans fundamentals have strong of – in underlying over the and
mortgage process with borrowers regarding plans part of monitoring in standard As our loans, engage commercial maturity. their for well any of advance refinancing we proactively
a we already our conducting routine before As were upcoming this maturities. on surveillance quarter result, began,
agreed combination we’ve in capital to we’ve a various been enhancements. far, so extensions and the getting On successful structural of
lead our amendments which approximately negotiations are office originations, any us XX% control or in a with of lender borrowers regarding We restructuring. affords over
in our managing over current workout we our in Furthermore, financially equity situation properties prudent. expertise if have can take of a with estate the office in these team, and portfolio CECL types allowance real for reserved The losses. is X.X% believe of of most allowances for the traditional We and adequately industry value U.S. one office properties. X% and our potential credit the slightly we have we’re over GAAP-carrying for conservative
that informs balance and management strong various is allocation. our sheet our portfolio well and resilient, balance capital stress-test regularly decisions We potential about and investment our our believe and is we positioned. are We for risks, sheet
the which were we property already in further peak any XX% of from reduction assume to U.S. assume we excess the purposes, traditional reflect current after were shock is XXX% the to on with if illustrative foreclosed valuations, office an ratio a a instantaneous LTV loan in that portfolio, reduction For and upon.
The incremental ratio would RBC approximately reduction Life our points. XX in Fleet be RBC
Our in the as of remained had this end ratio Life occurred target RBC above would March. illustration have scenario this Fleet of
While to an the a event. out more this that be to in time time, will this likely At longer we period. play traditional instantaneous illustration remember U.S. a any important sector not an and assumes it office event shock, over expect earnings it’s capital deterioration
has investment and estate team navigated markets very experienced real our Finally, is before. challenging
continue of invested assets only office to exposure, and We likely manageable – is traditional developments time. X% total U.S. over believe which investment emerge our is to any are
Now I’ll hand the call back to Kevin.
