CRBG - Earnings call transcript Q1 2024 | Corebridge Financial, Inc.

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Operator

Hello, everyone, and welcome to the Corebridge Financial Inc.

First Quarter 2024 Earnings Call. My name is Emily, and I'll be facilitating your call today.

[Operator Instructions]

will can opportunity star do you questions, ask presentation, you which so the have to the any After by pressing

will and call Muderrisoglu, the go now our I Isil host, ahead. over Head Agency Rating to Investor Relations. Please of turn

Isil Muderrisoglu

everyone, Financial's update Good first and for to XXXX. of welcome the Corebridge morning, earnings quarter

Officer; Habayeb, Chief Financial me call Kevin are Elias Joining Hogan, President and on the and Chief Executive Officer.

Today's will comments remarks by contain Kevin Elias, take We your are begin and we questions. are not which and with prepared statements, performance guarantees will risks of based are assumptions. current uncertainties. may upon and statements and forward-looking expectations and to future then subject events management's or These

may those to results or change, forward-looking materially are on law, no as Corebridge's to any differ or place cause expressed required events undue statements. filings statements forward-looking Corebridge the factors actual any should by provide opinions with update or statements. or from SEC by details reliance implied forward-looking circumstances obligation such on applicable if and to Except estimates not the that under is cautioned securities you important management's

our the may now remarks. the at in financial to Elias for reconciliation measures. non-GAAP to to such measures website prepared investor.corebridgefinancial.com. With earnings presentation, is like of and supplement their that, over Kevin? would turn are to Additionally, financial on our which Kevin remarks most today's available figures refer GAAP release, I comparable The included call earnings and of all

Kevin Hogan

everyone. Good morning,

to focus, our customers and shareholders. Our we team are commitments with continues on to and execute delivering

start for discuss will call, strong today's I has year what Corebridge. been the During to a

trends future. I seeing results first will quarter performance. we the then our we with for and are reviewing for company Elias on to detail our will high-level addition well how are follow more In positioned across our share

year-over-year. per XX% of morning, This million $X.XX, or after-tax earnings $XXX increase operating reported of operating share adjusted we a income

We basis reported XX.X%, the adjusted a XXX quarter. also equity average over of improvement year point return on prior

is that return alternative That on of items, XXX represents quarter XXX basis our rate our returns was for point This adjusted long-term equity, basis investment within IPO. XX%. point Our rate to solidly first below range run target is which a improvement year-over-year run XX% expectations and since XX.X%. notable increase are our and

and X our Looking sales, key address strong value, expense will the quarter, business. factors on of to significant turn I and see attractive growth at we comment our diversified contributing the savings. business then model, margins, our franchise in each continuing

includes strong The diversified is positioning new and Corebridge, business. flows. model, first platform conditions perform income of range across businesses our market business for a products and prudently X our generates and competitive channels which cash advantage wide is factor that to across of sources enables distribution our different and The us broad multiple product generate

In spread market, we our on underwriting prevailing growth fee where dynamics given optimizing risk-adjusted and margin. to any the are mix attractive, on returns opportunities the most of can capitalize focus

portfolio of equity fee year the our account customers on seeing the income, we For favorable fee our needs base evolving rise, general X% the are of time, for prior year-over-year. At leverage which moving is XX% rebounding partners. year-over-year, to grew spread increased products which same we income lows. With higher, dynamics income, meet and markets from

mortality. Underwriting and fee-based a administration as base $XXX was businesses. as grown have improvement under asset billion, earnings quarter onetime driver This for this X% our to assets impacted management well items large spread-based be and margin by an Our will year-over-year. seasonal reinsurance-related

remains mortality within overall Our expectations.

our position our generate the of over commitments These flows income on flexibility, and $X annually. which to create consistent insurance and shareholders financial flows an cycles. enables market deliver attractive billion of across capital return cash operations Our strong cash to diversified company provide to sources

The second volume. in the and delivered Corebridge billion is first deposits of quarter last premiums billion $XX.X over our sales quarters. the robust X factor and $XX

our for and large growing are in we to remain and as we expect positioned well products services We strong, markets compete. demand the where

Further, are macroeconomic demographics favorably trends. these markets prevailing supported by and

with margins. third The continue we to produce we strong that is factor business profitability actively ensure maintain portfolios attractive manage our We to IRRs. levels double-digit

been income fourth in successfully our expenses. We sources core run actively the of growing full we Corebridge of And $XXX have contracted to on factor, our having Forward, and program, our savings. completed rate for aggregate million modernization also the reducing capital, managing acted or addition our

our to to we as committed increasing this pleased are philosophy our the adopt we have momentum initiative, of completed time. over we efficiency are off While to improvement, are building continuous

recognizing of to part our sales. an annuities U.S. advisers to investment of needs plan. population continue segments, Individual and meet remain we positioned Turning to deliver Retirement, as the with well a strong value are of We the aging an new of a generation who long-term to partner

sales account were a highs. billion first inflows Our near quarter higher of their volume over for fixed fixed surrender index General net quarter, historic fixed million annuities $XXX volume $X.X remaining despite charge the protection. was annuities and the exiting for for

this of our to business, to business distributed X sector defined and The our advisory are premiums relationship quarter. services In-plan, billion public Turning parts by financial and It provide this Whereas force employer-sponsored contribution $X Retirement. deposits field Group business: delivered beyond all plans. out-of-plan out-of-plan own brokerage, and retirement the represents to organization. of plan tax serving in-plan we and extend in There professionals. exempt

a provide services. businesses or customers both supports we platform products brokerage and to access third-party advisory range of Our where

customers. income for business proprietary a life value we need insurance, tools a generate which advice, that to is focus attractive that of base, and business. on differentiate with support ourselves professionals growth by in a for billion mix $XXX our force This out-of-plan the with contributor as field to planning financial asset well plan of role fee balanced driven our we X% financial capabilities the consistent sponsors results to financial spread grew year-over-year. Retirement continue of We our U.S. positioned and and in-plan planning serve Group is In advisers. our experienced both

outpacing we quarter, over And U.S. been in market. we Recently, increased the prior X% the sales have the first year.

to demand. it automated and and of our distribution in including Our to simple remains customers life our for tools, value well select for customers our easier partners protection range see continue purchase platform market we meet designed end-to-end products, Corebridge and middle digital positioned make the quicker to and With underwriting our products insurance.

we of on products was life the This transaction impact on our future the Laya earnings. market, with insurance life early in sale and unlocked In the that and fully of Healthcare of U.S. sale accretive. U.K. world's Aviva. in have $X.X now business last insurance are solutions we we focused Ireland, value retirement for closed, April, closed to we life With announced largest a billion year's And sale approximately together shareholders negligible highly with this

at exit transfers years, what billion advantage, which transfers for to a obligations. terminations, well believe the In holistically the of Corebridge we their pension looking including quarter on investing risk we competitive pension margins. attractive institutional positioned is full pension is we for serving employers to markets, to $X.X focused demand develop during risk plan have closed support growing

funded see motivated companies to are We continue and in are many expect act. XXXX, to robust as pipeline to a highly fully more plans

having a expect million book, regular on and issuer, $XXX first to issued also of XXXX GICs in incrementally the become more building FABN quarter our grow We we this volumes.

support assets we The to investing robust, is new these volume levels. across and have business in are generated we attractive the company

an Our asset origination $X in platform incrementally of quality investing the A+, of billion at our over to work put improving average quarter, first portfolio. credit single the

New strong of money average the above portfolio. on in first basis the rolling yield points out yields assets approximately remained the XXX quarter,

and achieving investment with our diversified portfolio XX% our fixed investment duration remain income risk-adjusted and strong needs matching committed while the over and high rated Our returns of remains liquidity to liabilities. well of grade, we assets quality,

Turning balance can we invest the continue business are a in our shareholders. and returning risk selective also to our framework to capital us a maintain to position in strong. levels our financial We management sheet of comprehensive we and where attractive remains putting originate, liabilities while position,

of further regulatory remains approvals, when we support process our are anticipate the required also the capabilities in leveraging this entity receive We Bermuda continuing and we work development The to activities. our track, XXXX. on business expand to structure

$X to increase objectives to enhanced this with give capabilities we the and billion our optimize financial approved our into This ongoing increase expect to have these the Directors financial capital provide financial complete, additional strength. share continue week, us in an will to confidence repurchase our reflects the authorization. existing And capacity, management XXXX. flexibility board's of our and support of opportunity to When our This Board flexibility our expand growth capacity capital.

Looking for growing shareholders. our ahead, long-term and creating Corebridge remains committed business, serving our to value customers our

call We to XX% on will AIG, all people to position. results in in our with over necessary XX% I gratitude who to take of the for our Elias, ROE, go positioned to energy more support the action will financial maintain and our this our Corebridge's a of and for the ratio to quarter. turn Thanks partners XX% help are the well on more remain we country hard strong XX% and executing payout to of work team strategies and deliver achieve commitment detail into now their to lives. the financial

Elias Habayeb

our and consolidated capital and a provide liquidity I balance positions. quarter, Kevin. delivered In sheet. update will you, segment robust Corebridge and results Thank strong an on our the results and maintained business address

reported operating an a $XXX create and earnings basis. for value continue We share to shareholders. or of pretax XX% million adjusted income of quarter year-over-year of per on $X.XX share per increase first Corebridge

EPS items investments, net offset by a items operating alternative prior insurance have $X.XX. adjusting impact our our offset by After $X.XX to items rate EPS true-up $X.XX impact portfolio a period for in benefited reinsurance-related alternative expectations. on below business. life from our our run in certain related notable notable investment was been onetime from long-term investments, This further returns partially would operating from a and Our

XX% increase portfolio on comparative growth, shareholders. We the delivering core we are businesses returning an And year-over-year grew enhanced of by pursuing financial track increased to capital a XX% of the expenses. the and This XX% payout profitable to time our including ratio. returns, reducing and our IPO, flexibility investment established at basis. deliver a Corebridge on goals financial on to XX% and operating earnings to ROE while we was a XX% optimizing

XX% an basis base improved investment points companies grew to for increased period. portfolio income while basis X.XX%. XX% Reported income insurance year-over-year, Net APTOI XX our over yield the same on base

the portfolio albeit grow, to income at basis points for notable items, base notable expect adjusting from we slower will and a impact items, increased continue After yield year-over-year. Excluding yields base XX base pace.

the in private quarter. alternative declined offset returns by investment more Variable a in losses were $XX estate investments, million traditional Positive loss mark-to-market than year-over-year, by in income delivered driven real which equity. net equity

That are expect equity real quarter At largely accounting. mark-to-market to equity investment rates. to path time, a continued will in portfolio variable the returns overall due Our from to said, estate that negative second depressed investment funds is returns overall largely second remain cap in that in likely the we this higher returns improve see resulting year. the subject half we real estate for held of potential

General our XX% in. of by $XXX basis. insurance Corebridge the driven initiatives program by and year-over-year company on million, businesses and expenses operating benefits were expense earning This for discipline Forward better the was parent a

million To run reminder, results. to earned reflect expect majority of date, first quarter Forward benefits. And savings of and rate vast our from the XXXX. have we by end of from seasonality our the earned have into initiatives higher $XXX into expenses a As more Corebridge the earnings savings than arising program these compensation

from after-tax companies maintain $XXX in to of of achieving of million of the to healthy the income. first has ratio quarterly share We operating XX% a sheet, liquidity. our continues were $XXX payout million. quarter, and progress Distributions drives of shareholder company capital, consistent flow cash million with insurance strong a holding ratio returning $X.X payout of Corebridge $XXX million comprised Corebridge and We value. dividends. made and significant regular XX% quarter generation of balance ended toward billion XX% adjusted $XXX of a repurchases, delivered our

approximately were of repurchases million. As May year-to-date X, our share $XXX

U.K. will first excluding of the in of Looking with XXXX, the performance now, income disciplined continued and May execution Retirement $XXX adjusted pretax strong which income capital the an reported from share business notable their our pivoting and management during disciplined quarter. beginning variable increase our to we X% investment million, items. year-over-year operating Individual after expect with to segments proceeds our forward, remain sale repurchases deploy business and

was improvement resulting by account from base growth. driven primarily This strong higher general spread income

grew and improvement attractive asset X% the of Excluding income business by by notable by block. also in-force active XX%, margins year-over-year, income driven in management grew new Fee driven and underlying an items, we base by spread valuations.

want have grown time base our earn investment I approximately little a we trended of to income to how over net XXXX, approximately by time, investment $XXX unpacking the XX% by Since time. spread base by spend has points, money investment-grade a quarter. beginning spread same driven approximately expanded million on spread largely At base the higher attractive historical very levels. XX are basis yields These assets. net we've spread new

during earnings and we peaked, be there could has likely call, net marginal expect mentioned February investment XXXX we spread As our compression. some base expansion

after for primary behind points for XX spread For compressed Individual example, Retirement There net base X are points basis but year-over-year, the basis items. marginal compression. notable drivers expanded X reported adjusting investment

new the priced is attractively writing double-digit business at we're First, IRRs.

new spread base on relative tighter spread However, the to is the the the base portfolio. business on

in with dynamics the cost Second, surrenders pressure lower perspective. of put crediting portfolio's in putting to have been it's concentrated blocks important these upward That rates, said, on funds.

continue remain levels. Furthermore, on important over net will the high overall portfolio expect base at is grow attractive investment takeaway coming The and near we that are spread here the very historic base years. spreads income to

of fixed this of charge quarter, net annuity an over a block account Moving flows its business from large rate elevated arising million the exiting general on, in surrender even period. positive surrender delivered $XXX with

At beginning the into and we January time, steadily lower into that April. the monthly at of saw continued from sales same trended fixed peaked continuing annuity the surrender April. but quarter Our increased trend of

income This and of of improvement growth adjusted income notable expenses. primarily lower in business. of comprises reported asset XX% the Retirement Group reflects $XXX group The year-over-year approximately and that X% pretax and of million, operating advisory in by brokerage sources investment excluding increase higher income income was an items. fee variable underlying and driven the after increase growth valuations overall which retirement both income, our fee

sources transitioning a broader whole, this and many in-plan deliver balanced the of near-even asset of Consistent On income asset distribution. industry been experience to participants segment income. entering with fee and spread demographic have our to retirement are continues from split trends, between with accumulation and

and minimum As tend rates or and driven to net typically are a higher result, in-plan by have higher XX.X guaranteed balances. outflows participants aged interest older, account

age as are deposits. and well dominated inflows net Concurrently, younger fixed and lower out-of-plan with guaranteed by fixed rates minimum our annuity interest as in-plan cohorts index sales brokerage advisory and

a brokerage X to Notable for included by saw item our flows. investment onetime income. year-over-year XX% basis of income income $XX notable a and million after of which $XX reported adjusted reinsurance adjusting X% pretax Insurance approximately investment but net is excluding net retirement million decrease partially related our notable compressed We operating and Life points deposit items. base million, in variable group offset spreads items, $X a for included basis not expanded in items after points related onetime in advisory investment X growth reported net year-over-year, items. business, Reported

Laya which in The comparison by of October margin was year-over-year the of underwriting impacted Healthcare, closed XXXX. sale

Excluding Laya from other income, X% to and included to and mortality life declined respiratory extent, higher lesser margin which investment notable and claims universal year-over-year underwriting variable diseases. due a COVID seasonal items

consistent this favorable our of experience, experience, primarily was with mortality of traditional quarter. which comprised Our impact term, inclusive is mortality reserve Overall was expectations.

divestiture on margin is businesses, the and to overall continue the negligible. impacted our our international earnings was by impact divestitures While of underwriting the be will the of

investment by a spread excluding higher adjusted reported was year-over-year million, the income income from variable The increase XX% notable growth. portfolio driven improvement of and income operating primarily arising items. after pretax Markets Institutional $XXX

our XX% higher reserves $X and Our year-over-year, GIC or volume with transfer the issuances. of expansion grown have billion of risk pension business

cash expect meaningful Looking expand lead ongoing to and of attractive forward, which income base continue flows. both to margins, distributable should businesses spread we opportunities to further growth at

increasing proposition our the to value, in improvement call while Corebridge with the to exercising discipline continuing now the generate to reflects results provide conclusion, financial back highlighting Isil. strong we franchise achievements, continues growing the I turn expenses. will In value investors. results and our our our business growing

Isil Muderrisoglu

Thank Elias. you,

please we reminder, portion Operator, one the and limit follow-up. of begin a are As question the ready one Q&A call. yourself to to

Operator

from line first Our Instructions] Suneet Jefferies. [Operator with question the of comes Kamath

Suneet Kamath

Kevin, And wanted will that talk coming of with the comment of terms over couple we just we start, of that little continue the unpack channel? this growth years, do to expect seeing from I is adviser made you of past in that awareness that, sort Can where you a ahead? are and about of about annuities. the annuities resurgence bit

Kevin Hogan

return Suneet. Appreciate back and when maybe look fixed you available. Yes. income the Thanks, kind until -- for investment The way that of portfolio of vehicles, a role index not an up something is, the as X low considered if were that over because fixed such very the interest cycle rate provide change, returns reality started question. was type a the a or seriously was that fixed ago to years low-risk annuity can

part And value long-term And in last of the investment asset rates a to with what's fixed of of allocation. happening allocation as attractive couple is is strategy. an is income a now part the been there in very that years that annuity change great in be perceived asset option interest as

XX they've see a so XX the actually or And in fixed business, this are the time at rates advisers product a allocation the had attractive. the interest years in years, chance financial is been to returns available let's for where that say, first have point

the embracing and it, asset that's so thing. and of generation also advisers strategy new understanding a And enjoying customers are same that that allocation

see volumes. boats new is the That's for secular the a So we driving as raises it business industry. trend. something It that do

broker-dealers, professional in advisers are fastest-growing and distribution distribution largest, channels Our banks. financial still

so it adviser And within we're seeing communities is that trend, this expect will continue. we it that those and

Suneet Kamath

guess on I Retirement, Got it. then Makes comments. just Elias, I want Individual understand sense. the to And just for sure I make

I bit. that might expected So but you think itself is the income base spread to increase, little said investment contract a spread

I put investment the X in talking if so volume that basically And increase about income? together, driving growth

Kevin Hogan

Yes, in, Suneet. jump thanks. I'll

a seen near more and in We of compression, term. spread little see may we have the that incrementally modest some bit

to think understand important it's I why.

the from beginning our last we our So as change rate in interest strong And rapidly the well distribution income. at the and beginning our remarks, and spread platform. product this presence right? pointed our both was and of in We broad the Elias executed -- prepared cycle with grew very the base spreads out,

And the benefited new reality the impact no the funds. margins And cost almost also are with very from is are business that right on underlying and attractive, sales business new the the have opportunity the same the margins in-force now time, reinvestment of at robust.

are effect that in that is the is account increasing because the incrementally to the growing. the business profitable. rates where that's new the the new because the and is and higher general and do is in-force So funds of grow the growing profitable, cost The cost the that base is But of we reality portfolio. seeing expect income you're overall of spread overall is earnings the interest are business, now funds

And the conditions remain good.

strong be to distribution need supportive. continue is macro very environment a there. is position. market in The The We

early. a fact feel the And confident peaked, well we have XX% And business, remain in ROE our and to we're to we other a although all targets. base of very spreads may path more our reflection so XX% on about clear that's that achieve we and themselves of of optimistic executed the executed

Operator

question Sandler. with from next Piper comes John The Barnidge

John Barnidge

opportunity. dynamic retirement? X, comments you group and XX for individual that for the age being being has trended that, and average outflows younger. and and In flows the older of morning. the What's how the customer Within inflows Thank your Good the years? average generally about over

Kevin Hogan

Thanks, John. Yes.

And age. in-plan So but industry, that ago. XXX(b) years of industry, in then, increase and can we contribution in of is kind the it participate and seen an we've in just with you what exceeded exact we tracks aging business the since if me. even the part XX.X fact, the a the track little I date of average incremental Retirement defined XXX(k) the in in entire retirement that that business group And XX kind Group have carefully more about an say market. front across business. I And of age in, at our the in don't look in the not of the the in-plan of not-for-profits average in-plan

the in-plan it's now in business. think for I the low XXs

And to and in business, on older. is be out-of-plan slightly customers tend annuity business customers a index the annuity The a fixed then the little younger. The in product. bit bit depends profile. age a customers the little The it Retirement of Individual middle the really different variable annuity maybe kind then

where I see more is, So the with the XX get between specific back across portfolio, think, average Retirement we Individual numbers. and XX we'd some can but ages

John Barnidge

follow-up, business? a final That's been really your that was DOL my helpful. how any initial there may impact And have rule, on thoughts you do

Kevin Hogan

Yes.

then So September be XXXX. to there's the a for months to advisers exemptions. the is guess And what we're final look, XX effective prohibited I business. in the of implement new say highly now able It is, transaction guidance I'd regulated like has released. been in

essentially we obligations. so is we're implemented We something before, implement and we our to like has understand to prepared necessary. The prepared did industry be are again. well, what and this -- We'll do as

distribution is that distribution say are up largest would business earlier, for And of most world. I professional mentioned the in channels individual really like or of grew our retirement, banks. representatives registered What broker-dealers I our as

interest and XX% of of familiar many already parameter to adhering and are Group principles. those XXX% they with our largely already that SEC's fundamentals NAIC's Retirement so version the or of through the of Reg so And DFA, distribution BI distribution Retirement are best our of Individual

trying the is channel. demographic, Retirement participation reaches channel different a small an it Individual because IMO But strategically it develop. a we're the to that important In have and it's business, in we something

it's for common to We understands will the be with think So important everyone We'll that of a But final our we're have care rule. accessed interest standard familiar prepared still be to there financial best type it. of standard. distribution and of the our education. most that are implement studying requirements

Operator

The comes Wes Research. Carmichael with question next from Autonomous

Wesley Carmichael

I this wanted It time, last around it quarter, investments. item material in more and on kind too. of to was was the big really just dig notable in pretty

you like more significant detail a I share because, So that mean, there Individual has an especially some base think of on adjustment, of impact making can the pretty I Retirement, spreads ex-NII. kind cadence

give you detail? can little know you said additional I a any more was but So it just color us a helpful? prior adjustment, period be would

Elias Habayeb

Happy to, it's Elias. and

say historical nature what So both of is system. work we are where and as that's true-up out historically of from convert they net identified relate on somewhat under our investment onetime They to there. we're And them they over years. several income a I'd are why to part items reported calling into related. And new

Wesley Carmichael

said just, interest were you that equity Okay. know actions strategic at give you you can with looking private elevated. And of updated everything portfolio? maybe Kevin, us somewhat the has kind thoughts risk any I been and transfer on

So if us you be update an could there, would that great. give

Kevin Hogan

you. sure. Wes. Yes, Nice hear to from Thanks,

we optimize increase So our demonstrated we We're as execute and feel operations, portfolio. created in regularly did great familiar of about review billion opportunities ability to prioritize the sale value to with $X.X when the Fortitude We our value the very international Re. We there. I've we said, the created process. and we our

good relative growth something business opportunity the there. transaction to of an and evaluating in we our new that's entity, Bermuda opportunities the working are or external terms supporting potential, capability both to making is that capital expand And mentioned we're that our But recently, we we progress there. also efficiency. we're understand of we can and leverage As

do all And the the time evaluating we're to any we our we that news. and the have attractive an will transaction shareholders. be to provide company at that update will So any options, we

Operator

comes The next Elyse Greenspan with Wells Fargo. question from

Elyse Greenspan

My question on is first share buyback.

going that Life back to said start the starting guys buying in the May. you're transaction U.K. from proceeds You

relative base in as us that QX Or buyback case elevated to the rate buyback should give think So you maybe and an about QX on run just just the normal, can XXX expectations? we a you million?

Kevin Hogan

Yes.

start I'll it we general a of So us. we a strong balance discipline and capital business specific are has without committed starts to very necessarily the with payout that to ongoing with, to are respect capital a model. an for hand then it committed to frankly, a cash sheet, and to comments ratio I'll have Elyse, need our look, about front flows options nimble over philosophy And transactions. clear that just basis some building and executing consistent that with But on Elias company we delivering management the management XX% in strategy, XX% with

way But when focusing in of best distribute kind the of look capital, repurchases. that terms to we front have we at that, transactions generate market the do excess options in us largely on now open of

are ask front Elias Life a And targeted repurchases. for options in of number I'll be comment that. on U.K. the proceeds to of that stated have And there will We us.

Elias Habayeb

Yes. it's Elyse, Elias.

base So to market will repurchases. for as Kevin said, case open use be the our proceeds

the we volumes that want around is philosophy where trading the we're mindful in Our of market, consistent to are. be and

will going any at time. to in do So how we much inform point that's

Elyse Greenspan

And you transactions you PRT activity in trend and pretty the pipeline the question, a my year. the remainder positive prepared your guys how the just second then opportunity seem sense deal remarks of of could for give there. over about Can us

Kevin Hogan

prepared funded moving risk pension about companies transfer fully rates of are -- are, and -- are funded little opportunity. for very by a may to with are a marketplace plans be to prepared so with been well and The for very Elyse. some that quickly also have positioned bit the thinking lot where fully the surprised companies is are time fact this ask. miss that ask Thanks, not interest now Yes. companies that to And interest then are those rates for they very, right

some full We focus for larger-sized that terminations. transactions. little bit plan on complex. to time, more which market are a focus on focused We We on medium

as U.S. and And reality all plan optionality is the year it. we were volumes is the we've Think be a plan in are the above market at year. we've full that as the U.K., terminations pipeline, to last reinsurer seen is, strong And terminations. act in expected necessary where full they this where the to the as capabilities for built the or support both

M&A But transactions underwrite run what episodic. that that rate is say were they because We complex highly hard if to them and project are these each one is an of it's I'll the transaction.

a sheet. sort buying balance of You're mini

liability You asset to the and both have understand the side.

focused that a very ultimately, large and given large transaction most And portfolio. have medium transactions. we're of ensuring we our be delivering on for pipeline accretive outcomes So we'll the to of any economics

Operator

Our next Krueger with question comes from KBW. Ryan

Ryan Krueger

Good the morning. of a spread. base follow-up had on trajectory I

like you you'd group about and is also comment retirement? institutional expect that Or compression further specifically retirement So sounds in near expect individual something as some well? term. it Was that

Elias Habayeb

Elias. it's Ryan,

So some business. us we're business. not there be is But it's be going could part to going a individual marginal the higher more lot for It's compression. to in It's from that be retirement. earnings but on reinvestments growing the thing in here, key partly sales,

products back we in spread current given outlook. growth to expect you So the earlier go comments, Kevin's

Kevin to the where bit But earnings there's reinvesting a Will is at assets going grow out down. spreads. cost rolling much articulated, of than for We're flattish money headwind of a on marginally to are higher the of reasons be funds levels big portfolio. but maybe the

here. And are on group, flat similar, similar, dynamics of to maybe slightly little but different, down kind from a

Ryan Krueger

Got it...

Kevin Hogan

Yes.

spread are incremental not funds as compression, I sorry. Like to of marginal on. talking the increase. -- significant wanted add Ryan, spread cost Sorry just compression we

that what the reason is we're that's on, base generates is So spread income fact and in the focused spread the that really -- the that income. the

in grow, to individual particular, continue retirement. to expect We in

Ryan Krueger

rate then of And $XXX earnings to it. -- institutional, the for normalizing to million in stepped Is we been items, of the last if off kind in that a baseline has has looks run million the $XXX like reasonable grow forward? up about to going adjust Got it quarters. couple of

Elias Habayeb

normalizing, the on of to rate that estimate, in Ryan, kind You're run correct? alternatives

Ryan Krueger

Correct, yes.

Elias Habayeb

Yes.

And in expectations, we doing. business. PRT you the of of function growth normalize as go, the regular is more there given big long-term it. we've the of drivers a direction alternative of we've in of issuer business, the earnings We've trending kind before, which given growth if as we're reserves, So well the the is growth FABNs business you it the an as to the our said a in the in business new of become the expect is the

that continue. one trend that always to volatility, there be can't we thing control. expect we'd alternatives so and is The will And that

Operator

Our next question comes from Tom Gallagher with Evercore.

Thomas Gallagher

readily capital, bringing Is deployable in something excess directly that soon. It's be to from they're much going pretty now? back stock How you you interested And AIG? that would you you're be something would have say that clear relatively contemplating? buying

Elias Habayeb

Tom, it's Elias. So

the then go first, answer first. to one the So I'm to I'll going back second

are. case from something as in base our in are a we purchases. it's said, the buying your insurance I as consider. shares given like, open case question, now, right perspective our companies be open that's is as from will our are that liquidity risk-based kind base market On back If path buy there is AIG, So first opportunity we the to listen, you levels parent market. of capital But the we've where shares where well an back we'd

sheet And with sales. the $XXX quarter the balance we strong, ended billion past. to you've $X.X another seen we the of in And U.K. be million Our as out in in April, continues cash. got

we think So a in from perspective. sheet I strong balance position stand a

Thomas Gallagher

holdco was separation of and And lowered drop kind target billion $X.X target way, I that Are a holdco Elias, after spend. near-term the by then you of you've billion Got of at the was the to eventually, you. where that think, $X.X of cash, the going cash? initial level there

Elias Habayeb

strong as cash, consideration months next is So into there, is what were of a formula We needs our target a end the in a down. the we of position function debt our cost of as expect and function next it from XX-month laid We quarter It trend of take regular dividends holdco XX the out. but a down, any I function. trending expenses. but service our it's the of is would to

Thomas Gallagher

what's sorry, Okay. And just commercial lot on mortgage just a loans, that? quick one investments, -- on a

Isil Muderrisoglu

limiting one question, it one to Tom, follow-up. we're

Thomas Gallagher

problem. No I'll requeue.

Operator

next with & Joel Our Dowling comes from Partners. question Hurwitz

Joel Hurwitz

participants Are capture your able or In you that business? withdrawals the are from group, to of how much in-plan the in advisory retiring? out-of-plan

Kevin Hogan

Yes. Thanks, that number. not We do Joel. report

lot they're to so financial the throughout participants a retirement, Our in the assets of assets both that A with times position the financial of great around members the household the for working same of the -- at retire time conversation aggregation at comes their continue advisers, of to retirement. are consolidation work time X,XXX time. it family a our professionals in careers of when will valid

post But those the customers total of in while sort around what have look are of the XX% the retirement only represent base of of at employee I in Group period. XX%, that of XX%, Group X.X it that XXX,XXX population, can And say asset Retirement, does we is represents the XX% you that around million about if Retirement.

after our strategy is retirement important people opportunity assets for clearly, business. with working an this So aggregating household and of then

the individual expect it's of so. be of So recapture but sort strategy, to about rate, we it our continue and been successful don't element a we talk to

Joel Hurwitz

returns they've Can up Okay. environment following business full maybe talk about competitive or different player you space? termination that the as there attractive this new question plan on PRT are been? as Helpful. And Elyse's on and it's the seeing historically then PRT. [indiscernible] on other in not Are just you some of

Kevin Hogan

Yes. and options. the times, who We is the lot different. those terminations termination a multiple are full multiple plans it have full of employees And because on is focused have with plan of there space active options, the you deferred characteristics plan

the underwriting the time. those more So at able you need little to track they to bit take it have -- appropriate them of sort a to keep be requires choices of Plus, focus. offer

years data, necessary. doing XX we those aggregating underwriting almost resources, starting built research capabilities, so the and the built ago, And administrative we the

good plan working feel to problem think, plan There's as Plus, so in flexible well be creating you full position fairly because the a we're quite and the approach, one able to with each bespoke. solver. in is terminations. very a in I sponsor known, transaction And in be have standardized we no

full we number what the plan lower. participants find is is of in terminations So that

secure to business have confidence economic we we've that the the We that underwritten and on GAAP economics priced the as stat on and find well lens the don't the We if attractive. are economics at have implications. looking the we based as profitability been transactions attractive able very to sort of away move

expectations. And we're is our writing sort that at Sometimes, aspect. with margin business GAAP consistent we that returns the consider of are the medium-term

pipeline the and take the economic attractive. profile more very are negotiate, of The full believe plan will on They terminations. some that's strong. actually, to time attractive, we one the So continue focus to but transactions is reasons we that is that

Operator

Evercore. comes question with Tom final today Our from Gallagher

Thomas Gallagher

in. me Thanks back letting for

talked the and Elias, Just in your mortgage do would just I reserves I the the not next activity curious, Meaning, expect But to over you've commercial activity side. seeing years? strength are foreclosure the you those use on the with. or about would question waters know investment which loans, your that for you front? concur much on ] comp few and restructuring or reserves, -- expect much [ you

Elias Habayeb

if track we date, So off kind Tom, paid getting due at of extending have we've that record perspective. been from look come either our the in that successful to or loans

part find situation as we best structure an sure is But have an agree is a of the property And our borrowers trying is to solutions not very restructuring in of We foreclosed engaging people. with this team the kind for our capital this get to evolving on try of sustainable. the and stage. extension, anyone to at make to on proactive

said, I a where -- you we comfortable have feel position, reserve, not have it also strong estate team our it's in we we but we that we can't have happen, good we're own to equity real not should That funds. tell going being only a happen. do a But

So between foreclosures us, But we mortgage do. if we We have team and for to estate is what at portfolio. ready point, equity loan our in answer it the no our right real commercial for our think team. know foreclosure we're this

Kevin Hogan

for everyone has for you, Thanks joining nice everybody, a Hope questions. morning. us your Thank day. this Okay.

Operator

for concludes Thank may you our call, and your you, now joining lines. disconnect everyone, This us today.

Corebridge Financial (CRBG) 3 May 242024 Q1 Earnings call transcript