CRBG - Earnings call transcript Q3 2024 | Corebridge Financial, Inc.

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Operator

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

Third Quarter 2021 Earnings Call. My name is Charlie, and I'll be coordinating the call today. [Operator Instructions] I will now hand over to our host, Isil Muderrisoglu, Head of Investor and Rating Agency Relations to begin. Isil, go ahead.

Isil Muderrisoglu

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

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

expectations may prepared We factors take events obligation on such results guarantees you events are forward-looking forward-looking to assumptions. of are provide place will comments and statements subject if remarks will update from risks questions. Today's Corebridge management's management's are the begin materially by and by based uncertainties. as cause then not undue on Except your reliance statements, Elias, laws, forward-looking details contain actual by with or any that or not and and filings required forward-looking future to expressed and change, the differ or Kevin opinions should statements. upon applicable may to performance are circumstances implied no or we estimates to and which current Corebridge's under or statements with cautioned any These SEC important securities those is statements.

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

Kevin Hogan

diversified earnings balance significant focused our continued value capital of create Financial demonstrated third again on Thank I shareholder Through review we return generation in how quarter and our you, growth will the results and our and and detail business execution, once sheet shareholders. Isil, for Corebridge by to to everyone. Today, strong cash good delivered value and model, proposition. morning,

Slide we a $X.XX, operating to year-over-year. per XX% increase a as very quarter grew Corebridge strong share X. had Moving earnings to

With spread of sequentially. income, risk EPS these supported strong sources and solid same rate achieved and grew We assets X% liabilities, businesses, prudent XX% fundamentals across sources over balance diversification. business income increased diversified fee period. while year-over-year. Each our maintaining core of results our the our and of underwriting a our Additionally, sheet, run and once year-over-year management by also increased high-quality attractive X%

We management, is are across facets Corebridge. focused heavily on asset which liability embedded of all

design is on strategy our by asset risk Reflecting broad long shareholders through liability actuarial a our our management. part reserve adjustments of our product had the driven and continues part significant business. U.K. focus, XXXX reflects Insurance to assumption capital update. Built the create the management strong Our for return Total of execution. sale to product our $XXX was annual million, product value quarter no Life foundation, profile and our tradition from third as of portfolio dynamic Corebridge thoughtful of including Corebridge proceeds disciplined shareholder

Moving to Slide X.

customers' Our and to continue strategies. distribution partners' our market-leading businesses support serve needs

macroeconomic large and Interest at our in of environment aged to are markets supportive money mid growing and a The Insurance protection U.S. durations to new attractive given expected from rates rates levels addressable Life population benefit also and a of tailwinds significant excess Our each remain were at retirement are business. gap. strong and X%. continues be

business. for the As offset more at yield rates be A over growth Elias be in curve steeper short better overall portfolio than but from may the will generally our expand lower will upon, time. impacts is short-term by these some there the curve of end

what reach the straw that full were volume by launch the million and level billion for and current with Individual improving $X.X first Now In net one account and in turning and quarter Individual premiums for the Retirement, index-linked of surrenders exceeds nearly account future expanded to in year-to-date, businesses. our supported strong we year Last what annuity billion. earnings. XX% general industry deposits increased on year-over-year $X.X for General the registered RILA. annuity the a $X.X to sales the platforms XXXX. flows to month, already flows as or Retirement platform serve These drive to is continued the of a broadest already

As part partners deep we long-standing process, product of with development the of the we distribution strategies. have understanding our relationships their leverage and

that RILA positioned day is from distribution category. The ever. our top as most the annuity launch reception X in is nearly with professionals already XXX partners, it Financial Corebridge in our Core together making Group bridge. to lock every an a the sought-after top the features together product product exclusive new only already stands another we pleased Our RILA date. brings were resonating our now with partners X, to largest major market, the sell produced with provider at offering solid of product quarter. with Retirement to our and are strategy

growth XX% and X productivity has growth our Life we resulting are in of an have strong further their had improve very been the part plan, advisory, Sales part of quarter. and year-over-year. to for of administration our an of adviser customers plant million in out-of-plan increased our annuity plan XX% quarters. our assets X.X which year-over-year, diversified out-of-plan significant Insurance efficiency, and and increased and portfolio grew of as deposits acquisitions, professionals investing The Both is planned deposits XX% out a experienced important in Advisory an essential brokerage XX%. per Excluding was premiums long-term opportunity as financial and outpace XX% average team consecutive and brokerage are proprietary increase and of under continues success, only. in for premiums to annuities it year-over-year. industry

earnings new this are facilitating attractive a our application matter of auto Reserves a policy this strategy XX% underwriting year-over-year, further increased furthering platform. in supporting a a Institutional minutes. contemporary delivered our a Now, we quarter, of a business XX% regular the pipeline our is professionals, reason [indiscernible] risk transactions purchasing we with issuer. large for typically called quarter. also expansion Our $X a policies is process Insurance digital this modern ongoing With year to developed This of With Simply growth, Building the potential transfer, provides of success. we Life more robust financial of approach going practices, remainder XXXX. issued for this many feature newly Markets and have off that experience capability, to billion of distribution decision decisioned. issued strong pension key see data-driven had become to and into

and take complex a we As in time not cash and develop specialize flows. that transactions are to consistent reminder, quarter-to-quarter

just a few talking in opportunities the continue contribute share grow about I increased We will growth. earnings organically, organic business fundamentals will, turn, our minutes to ahead. strong balance is which spent first per sheet over The Corebridge and to time. believe our

The second strategic lever balance is sheet optimization.

to to To opportunities both and we flexibility. will sides to strategy our explore and enhance financial liabilities our our on to manage capital. opportunities both We continue higher this to end, additional continue actively -- assets drive return pursue are expanding Bermuda

The Corebridge expense third on efficiency efficiency. of is modernization expense phase We successfully program. our first Forward, delivered and the

the of approximately in moving phase savings expect the to from million XX, we program, through September $XX earn in in modernization. to of final million next have and earned Corebridge As $XXX XXXX. this is

journey end-to-end the the and We are partner our insurance digitizing further distribution support operations that processes experience. to customer improve

process further investments made our actuarial and building we on part to as our the also of significant modernize are finance We separation capabilities.

on cash to executing committed capital over The increased shareholders. is lever returns, performance management. opportunities goal drive provide shareholder focused an and to delivering on and return time. enhanced managing are growing Corebridge efficiency the to improved We to fourth attractive operational remains capital effectively with

Next, making update some want goals. you a to we of progress I against key the our moment financial spend to on are

a rate basis Year-to-date, point to range. ROE of on we year-over-year have target First, average XX.X%, well improvement XXX run within adjusted XX% our delivered return equity. and XX% a

increase point Third a quarter IPO. represents ROE since the XXX basis

X the the IPO, [Audio maintaining most the we Gap] excluding Corebridge operating attractive IPO. run strong of demonstrated has returned represents the we billion delivering the capital rate to of per year, delivered target third, first customer the are since sale to months from payout XX% shareholders the share. also risk-adjusted and return. while and year-over-year. capital returns to And shareholders Life to $X.X our billion and consistently a the are U.K. the improvement XX% Year-to-date, EPS has business. position. of Second, needs XX% ratio significant XX% a Insurance allocate quarter discipline on over growth EPS returns year, returned of Discrete where $X.XX, to financial Since improvement earnings a proceeds third where for opportunities, greatest, Corebridge a achieve are to $X.X have

over call to continuing we and to forward, shareholder cash value. I will are share focused Looking turn growing earnings now the and on increase long-term Elias. per flows

Elias Habayeb

provide you, our Thank operating for remarks or improvement $X per share where today financial share key income will operating pretax on basis. XX% an billion Slide of year-over-year adjusted begin a Kevin. I X, quarter. a earnings overview the on results $X.XX, of my of Corebridge per reported I'll

resulting portfolio. be which operating long-term investment partially approximately from hedge in favorable impact of details notable mark-to-market $X.XX, the and short were benefited event equity X%. offset private was exchange a quarter, expectation were a in in movements. items by X Our traditional X% our of our found investment Annualized $X.XX this from presentation. to in a This X% X corporate included fund returns foreign quarter, earnings Positive EPS can loss of our alternative in returns

EPS As year-over-year of the first continued rate we balance year. efficiencies operating a alternative from notable and by growth, Adjusting investment expense a driven XX% and delivered active organic improvement of the optimization, XX% was returns increase for expected, capital sheet half equity increase This real $X.XX, returns, since estate management. and IPO. the improved run items

X. Slide to Turning

prior relatively driven X% favorable in higher-yielding drivers the year, rate hedging but growth last of and earnings improved each deliver underwriting with increase comprises brokerage business. core of diverse improved XX%, under retirement group was retirement prepayments year-over-year sources base the well our income with of by X% remained in investment on driven attractive The sources. of this as excluding along that, has Core X Corebridge income, the spread basis, by assets mortality were individual consistent values advisory returns On sequential based income Fee positions as Our more the growing account no experience. notable which to higher behind market items, of improved decline approximately by quarter Base in sequentially. sources of a by And income that X% spread sources retirement. impact declined Even in The an and over with conditions. our grew exposures are by XX% our income over spread floating margin quarters. quarters. different X% income, comparable was stable in driven exception. elevated prior individual that

given cycle, entered easing forward, provide to potential with you Fed the into actions. wanted Looking sensitivities its rate to we

Before sulfur than actions, any by additional management in X a XX first points would impact the basis basis less decrease months. point in yield XX base

management as this strategy. an of period. portion been rate assets scenario assets expect that on to hedging hedges surrender potential part moderate our X the a of of of rate could floating rate complementing points attractive have of yields equate our of approximately will and activities duration impact portfolio. impact of floating business. crediting in-force alignment rates source macro annuities Floating general actively and to tools A We balance base the significant their additional less use the result maintain Separately, is entered on play management just back exposure, active sheet any I important other investment net charge we and portfolio, management, role basis balance account Currently, outside as certain Under of the X% we mentioned, runoff have are these hedging the in of a than and liabilities into same yield. sheet.

our macro the any adjust positions conditions. relative to of case prevailing market the with As we hedge,

growth see time, While term. spread income to expect market base to pressure in in the we short could in continue Furthermore, grow to growth spread continued earnings expect the individual see to with business. we the retirement institutional aligned we in over see some

Slide to delivering track results financial attractive under of Corebridge Moving market a record different X. conditions. has long

business We are to our not and each or beholden any X product businesses X complement other.

and been more that of a to source has underwriting serves income, instance, are such sources a which to Further, when margin, natural impacts increase fee values counterbalance have other reliable declined, have fee risen spread of have and as and sensitive macroeconomic income driving income. spread income to returns asset income. interest steady conditions that For an as investment rates in alternative offset

growing longer businesses ultimately term, returns generate have The consistent delivering component a our working combination together over the result, is cash companies our As a shown of and shareholder and enabling sources core flows diversified value from our steady market-leading key us of shareholders. insurance to strong to of proposition. resilience income our

surrenders business their year-over-year. impact grew earlier individual for the driven and Group of another and growth fee income by peak International annuity and which income operating Fee income XX% in variable to fee exclude Life spread Now items, the our Individual turning delivered spread sale were income. improve in In Fixed the the combination of its and business. XX% increased both X% the pretax through year Retirement quarter steady by to highlights, of primarily from continued quarter. year-over-year, notable Retirement, investment income. adjusted

business. a capital-light to fee-based We reflecting business changing the dynamics the stream revenue continue see in to more this transition

general grow brokerage employment net Both to and spreads reflect outflows the to net fee we're transition flows income customers in advisory the of and asset services seeing implant and values. continue will while our impact continue account. As retirement, from

fourth their by outflows the with Looking levels end participants. seasonality minimum at plan net required in to resulting raised the flows distribution from the quarter, year of of

increased adjusted invested a more limited exits, by adjusted we've income Institutional large insurance, but group pretax In spread by by they're predominantly to earnings. from product, expansion year-over-year. favorable arising portfolio experience. of operating having group by primarily been grew Additionally, mutual income growth. in This impact mortality income Markets, XX% operating X driven fund In driven primarily informed year-over-year, thus higher our X% was upcoming plan life pretax

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

driven cumulative while financial excluding the company insurance the from our Life On balance by forward. the benefits our were growing of X% as Our multiple also from the general sheet. for parent results from demonstrate for of to of year-over-year expenses our after primarily efficiency the as businesses point, that by to sale income business, and quarter XX%. expense improvement was efficiencies well International favorable XXXX sources end improve ability the bringing This Corebridge operating

the Looking forward seasonality fourth to in quarter, expect we some expenses.

the turning year's impact operating adjusted no to update. limited third This income to update year the and in annual operating Now almost on pretax is impact actuarial resulted consecutive assumption earnings. with

the billion, quarter, domestic commitments have prior provides billion, We and $XXX on would $X.X from Distributions off company the XX.X%. flows with million earmarking remaining to subordinated insurance on Moving term of our liquidity our third Corebridge sheet to attractive paying consistent been in continues year. increase distribution ratio $X were to RBC strong XXXX. insurance Adjusting our portion Fleet the above over prefunding the $XXX and delayed financial Slide loan maintain Life flexibility our draw and to leverage on balance the generate the at shareholders. $XXX deliver from in balance $XXX a cash act X. a subsidiary, the remained notes ability Holding for maturing to us the in a million to for is companies and junior our million the issued strong year-to-date target. XX% September, bringing million prefunding, of opportunities debt

call distribute and on by over that, back in We now earnings value model in are and I'll execution track continue the diversified conclusion, turn Isil. $X the to sheet our to billion cash demonstrated our business create disciplined balance as shareholder generation. With growth XXXX. In to

Isil Muderrisoglu

begin [Operator call. the you, Q&A now portion Instructions] Operator, Thank we ready the Elias. are to of

Operator

comes Our Instructions] question Alex [Operator of Scott first from Barclays.

Unknown Analyst

is of comments financial some around had I one First the flexibility. on

opportunities you're think increase looking by noted at that it I specifically flexibility. additional was

Isil Muderrisoglu

speak sorry, we you hear up? you. barely can Alex, I'm Can

Unknown Analyst

that apologies. Is My better?

Isil Muderrisoglu

you. That's better, thank

Unknown Analyst

ask a was already I for this some what add done on know I but context could the you you about just specifically. financial front, have flexibility. wanted additional lot all I to at on you're hoping opportunities So looking

Elias Habayeb

Alex, Elias. So it's

their operations. we opportunities said value Bermuda shareholder as generation balance Bermuda before, talked progressing, be will you talk before, strategy support broader is we as business, that creating opportunities for sheet, you whereby with we'll know, we strategy that something new leveraging earnings for guys some we're we of we in we're and capital have Bermuda and opportunities that see improve to did International about very financial of the our as Bermuda new So business we've individual we and well proactive we over for we've look to flows flexibility and are did strategy have our grow to as our as we as retirement on excess reduces the about. The managing with look that's Life part with to -- strain and kind be as back explored, to when time. of the have cash And

Unknown Analyst

Understood.

the of more there was some give just doing other efficiency. Forward, generating the you just the color interested referenced was and beyond some noticed things expense could us you're One on in presentation things I improve doing if efficiencies to you're I and that Corebridge of what you're

Kevin Hogan

Yes. operating Thanks, Corporate we that lot a start. our to of the And moved modernized model. gave us We Alex. of updated great our We it, infrastructure infrastructure. through cloud. a Forward Look, a lot IT

of sitting we our data All enterprise IT in of our part the actuarial platforms finance platforms, preparation most and in one the part exited in but also another. is our or including and now We for for of the centers, in of some preparation separation. cloud upgraded in version LDTI,

preparing improving target are the have immediate partner a along or work. the And We the insurance announcement with and of Those the to time. an now immediate practices. we lot enhance middle our to and plan. have at in areas are areas eliminate next underlying further of work But place, of made we and the lot our finance opportunity customer that have the to while of then for we with focus work, we've this a beyond operations a our investments particular tools that experience. much and this distribution automate back place and And digitize that actuarial is is in the don't office focus because transitioning the and us. modernization to put capability phase it opportunity just associated the a journey of separation. so We're after able actually that working being for put program through also And that tools of

Operator

Autonomous Research. Wes Our of next Carmichael question comes from

Wesley Carmichael

First question RILA. is on

up about partners and You the long being you thinking from guess XXXX? of to talked of with I How are maybe do you about how contribution day that distribution X. ramp number on running sales a expect RILA, product up? the in

Elias Habayeb

Yes. margins. supports different strong our Look, at customer needs products. the number over appetites of risk range the asking I the our trained historical weeks, times. And we're a and initial about to our and overall couple the RILA on brought we And we annuity the creativity the appetite within to different indexed the in entry. feel fits distribution RILA the of products been continue of we're of mean, overall producers because And of have our been our the with support attractive products pipeline of strategy, building The It is build. increasing years. product or diversification. to partners And excited product. And than that reception has first risk basis RILA is seeing partners has daily that the annuities last to parts different and product variable that very is just market the first on supports frankly, The customers' it which our a a been fastest-growing has is a of distribution have product but provide it pipeline couple one the support is And reality RILA of been largest us couple quickly. version weeks.

we're there. And of an so our seeing expansion overall capabilities

in it what may are attractive of and position our each a margins. of in terms XXXX, In contribute retirement individual strong contribute products

talk strong any targets at And aren't complement about prepared but to it a in this so we point see as time.

Wesley Carmichael

company And we to effectively capital. about but to going should we new is is about you follow-up forward, support from your talked Bermuda thinking flows little there should their expect or Elias, business from on My cash expect that a And company, Bermuda. really bit, capital it to Okay. retirement. parent individual the of kind you utilize

Elias Habayeb

Wes. Yes. Thanks,

management opportunities engage as fixed look, next business. an an toolkit. there's option has which Bermuda. invest in-force on other third-party to strong It new in part products at now, an growing business. cash of maintain us appropriate lot facilitate been on then for then mean, margins toolkit, attracting talked sheet and over seeding business our attractive that attractive We indexed for we'll into ability new of consider we ultimately, So in benefit focusing is that able and annuity But But Right time. our look transactions point shareholders be management before, pool all us. potentially which new and as balance provides our to we're I is to Bermuda in at capital, may environment these, designed a from attractive capital provide as in to we've an about is our And a business portfolio time. of could and the capital return

Operator

Suneet comes next Our from Kamath. question

Suneet Kamath

the been I wanted annuities. have start to with sales industry Kevin, strong.

rates I level do year? been we sales, guess next of year well the not you pullback strong, question have kind held quarter. sales even like in in into pretty with the your is third from kind level of think sales how as industry the this sustainable of Your of up is, move

Kevin Hogan

driven huge. need I prepare getting think Thanks, has their the of for with I'm really, the the the people that's getting don't of Yes. short this country plan Suneet. and underlying in that larger. What I And structurally, the one annuity end is own retirement opportunity. curve. for industry the that and the say would things for is drivers to change And

products, based to curve really that's curve relevant a environment pricing to part the outlook has very favorable, of but the these very be of to attractive annuities the the going part years businesses. for last couple it's X- the part to Now is products of long-term most of certainly, on plan. in the allow the continue the been a savings spread that And current XX-year

say that would long-term years about the I community, that program. range advisers savings of couple the annuities as a value is whole last that of thing second adviser part have there's new learned The in of of the

conditions believe business And very annuity to so to the that are going supportive. for the we continue be

And couple so whether the pace really rates to conditions the volumes it's will depend of where last are the and what continue quarters, interest quarter, are of at each rates on interest are going going go. the where people believe to

Suneet Kamath

And how little Elias, I base Got just remarks, a I guess, on prepared I had bit could was wasn't the in you hoping because that it. I what unpack spread income that then, commentary your if guess, sort is you impacted happen? the decides And to it of is of actually talked to that about of way. how move you on clear a Fed pressure this going happen could much much certain

you granularity. revisit of little with can maybe a just bit that So

Elias Habayeb

Yes.

Elias. it's Suneet, So

is impact the point the in points. we've basis to a gave and our us years that base the basis XXX rate is beginning we've put base basis yield from there. the had there's And net since to XX XX X yield less by perspective over increased than X of we cut, sensitivity on time already the So last in points context, a

a duration. shorter play we be with expect extent activities, out. do be some sensitivity have would to That some mitigated the So will to that there additional floaters over will hedging

well we up outside a we the it and since portfolio at positions can some said, anniversary Fed being what that annual only continue perspective, and they'll quicker grow environment we most irrespective some have to to bonds the over than believe time on will that of we're period. share you charge of rate of That floating continue financial to believe our some as in of run income grow active might targets deliver but are but date earnings rate short-term pressure. that our retirement as we our surrender there the per -- back the individual will and So take the crediting will do. adjust And the but could and annuity. continue from pretty other the annuities spread be time,

Operator

KBW. comes Our Krueger of Ryan from next question

Ryan Krueger

make basis X hedges wanted more understood. XX than I basis did that -- like message One I decline yield, but point. short-term less Was point X reduces the additional point has that just rates. follow-up I basis sure that that then impact in to to correctly? SOFR macro on understand on Was your a the more the

Elias Habayeb

No, it Ryan, is a way the it's this Elias. works is point-in-time sensitivity.

a strategy, which the on we're there's that is reduced course I actually even outlook proactive we respect the the is chance they to in basis based respect of further. with expect additive. than balance year. these But the positions So change to X are hedges, our those sensitivity macro the them management less now, over portfolio, of macro the managing. don't part We've investment if hedges, think with the is points And what would to enterprise reduce sheet

BNF So time. only I different. at look in The at of point look sensitivity is for But a you reason less where as kind that basis there a hedge And which since X XXX little than basis base we is macro true portfolio, that's sensitivity we've yield, would the investment it points a giving on is. the if the at points. XX, over by points completeness every XX basis the are increased

Ryan Krueger

were be grow Got you're a just higher sense. expect spread consolidated do Okay. basis you'll makes to about able think you you outside facing? mentioning I you certainly of earnings level, spread levers mean, that then a other maybe rate think income. despite of the And guess pressure just I run you when on That XXXX, have it. I at in dollars

Elias Habayeb

as number capital. on growing earnings are focused earnings play variables as by well a EPS well there Ryan, as it. So growing There's of We're that both as in the growing growing expect earnings growing we obviously trajectories, short growing EPS as capital the be earnings and we earnings term. as to through well to that return. some sensitivity But as view our longer-term

Kevin Hogan

at described. of is new between the And I Retirement, our we've a sales Individual Each very being expect of impacts, is continue be income this Retirement, to -- to the assets the up on is is it this brokerage just there's spread of about Ryan, X This The our Kevin. I'll out-of-plan XX be a base based position. up income of margins dynamic this XX% actually are jump advisory difference base business. dynamic sources where for the the Group middle think years as is strong just fee attractive spread in exceeds we explained very condition businesses current XX% like implant overall in been in. up is some in and short-term attractive we've income. anticipated and and fee the portfolio our to to ongoing -- year-over-year. And sometime. talking Elias now But In fee an see asset XX%. asset

to, earnings. So potential Group I its sources Retirement grow continues think, of

business interest We've X in is row really and our excellent a is quarters in shape. market position. portfolio after institutional then in business on markets focusing sensitive of life less outgrown the Our a strong parts the

on market. market of positioned spreads, wouldn't a relative that So the our this is each well [indiscernible] I overstate businesses of from we short-term sources to different strategy and impact its multiple conditions income, that's

Operator

next Gallagher comes of Tom from question Our Evercore.

Thomas Gallagher

management. First question on capital

U.K. us; capital should did in obviously, the of but on in you normalized you XQ. up very a heading that is buyback that asset rate half access proceeds, a there's used probably I one how Can level strong remind generation, management amount a, of you lean that if the from share much management, we and just, still the but XQ. QX, fourth you into if you've have might from liability curious into question quarter. repurchase about capital Second just look If how in think it's Life run opportunities at

Elias Habayeb

it's Tom, Elias. So

both overall repurchase share capital to dividends capital So XX%. is our return -- XX% target

cover portion of proceeds extra. third we've And deployed We this organically. terms for U.K. the were meaningful in quarter. expect of that The in fourth the a would to U.K. quarter year. XX% I the thinking to proceeds be XX% in

Thomas Gallagher

about is, shock X% mainly setup against why the Got that's surrender rate, that prevent ALM what an Elias, my of presume you. the to of scenario, And I ALM charge. would heard a rising you you my floating type backing way. thinking I annuities account, said rate it position about general question just outside

call So it hedge-oriented, defensive-oriented. we'll more

to sticking or are a hedging that in in portfolio comfortable way floating optimizes consider here, where beginning we'll rate change macro backing that big macro, just with block? or it, in that it call would this you maybe a seeing least the the at rates, repositioning you change Fed Given cut we're it

Kevin Hogan

Tom, it's Kevin.

I think I'll jump in here.

it bit. a little unpack Let's

ago, balance will that And when So management. we we always couple as shorten. And rise of the -- interest manage either change changes, carefully, ALM rates sheet will of our our started and as dynamic interest equation lengthen liabilities change as sharply. to years saw a rates or part

our will book, length so manage and have manage But dynamically for reinsured rate our ALM floating another the that an in we'll annuities role and in liquidity And the that is recent shape the us assets rate the role play changes, a benefited are the curve assets just reminder, environment. overall floating important that charge surrender that play determine period. And back we the the accordingly. to duration. never portfolio relative those we floating as from outside And yield as rate liabilities, and of helping of particularly

to We benefit in-force to actually but in-force continue from portfolio of that floating to that part business. that benefit rate the a that been business, has

So they've floaters also perspective annuities of that we business, some we has returns, they have annuities very more the have a liabilities to the dated particularly And then the shorter of not been couple X-year, purely become the outside years, some We of X-year do surrender ALM, respond are surrender. in but and -- we attractive of business support, risk-adjusted popular. last from that. have

continue we'll a manage rate way It portfolio. just dynamically you that it. [Audio floating Gap] isn't described the the defensive to hedge So

Elyse Greenspan

on is PRT question deal flow. just Gap] [Audio

little think the slower it's been first quarter. since I a

an was the balance Just for update in to pipeline XXXX? the there over of environment get hoping into transactions see you year terms of and this the and

Kevin Hogan

Thanks, Elyse. Yes.

the pipeline land have the strong plan of full do And that focus complexity complex these, economic just prepared support focused don't the terminations. can to I full full we term is find bit be than attractive that a they because So every of And plan attractive. full on a them. Because reminder, transactions. companies really We remainder terminations. year necessarily the administration the fewer the pipeline very We've see of find for to XXXX. plan plan We more described segment quarter. more there's to a little market we they're terms able of on -- since the continue this

year we've decent-sized In already very a been going of the number we've also fourth landed fact, quarters. we see quarter pipeline that transaction for for attractive. the into working on And next a

continue plans activity moving The transactions remain to in high, full. the U.S. are medium are the funded and both term, U.K. So very economic long The the see largely are opportunities. levels we in pipelines attractive in forward. -- and

Elyse Greenspan

And still healthy we then at pretty on the billion apparent my right? well, prefunded right, second as like take So account debt, a billion. question $X.X level, when into is capital $X

that's obviously, some done. by right, transactions you've that been helped, the So of

more? that As you've annual bring might of we past, in needs. kind down the I do spoken you think going just when think forward, about that think right, keeping in with you right to line

Elias Habayeb

Elyse, it's Elias.

liquidity said to we think we've lot expenses the are down manage as we've a cover rate parent seen the million I million about a next to the XX-month past, $XXX over run onetime parent $XXX like So from through had the our And expenses run needs. we've down you've rate. worked of in

continue of excludes consistent earmarked what trend And contributing million referencing The down. quarter, in parent. we'd expect that maturity to 'XX the the with for XX-month with all So need a end the $XXX you're that's lower the to at is that early past, billion said now excess the at that in $X.X which we've the of to needs. right

Operator

Raymond Burdis question comes James. of Wilma next from Our

Wilma Jackson Burdis

proportion written X-year touched popular years, talk rates. recent been mentioned fixed that X X Distributors to have have period years, a little the of the of about duration, on talk the me could of the but bit specifically over maybe been years that You higher fixed during last a about of terms years, annuities this you in that. more have X-year couple earlier, most annuities just X bit

to that's if So see I just seeing. also what you're wanted

Kevin Hogan

Yes.

dynamics, -- certainty There there rate started for the uncertainty were definitely So position, Wilma, generally, less clearly, longer the term. in of periods the around an see that investor's curve customers of be lot the products would environment terms longer-term rate duration a that shorter the when to there. was upon depending than change the attractive in

products. the rates part return broader over quite surrendered seen is the with their shorter-duration on the our the given curve. medium-term So a bit and long-term was to strategy a to it that customer product be, attractive of time, fits some portfolio may expectations a time. really of on X- XX-year something more in perspective X- traditional We've X-year particular, more of to the of and and customers And depends partners recently distribution the each at of that position with where what

So necessarily one directing we a strategy of have or towards don't duration another.

which portfolio with our both accumulation-focused have Our of further products just medium all new our or that is of RILA forward income that are with our or developing. include rounded product, to strategy, products are those multiple we're or course, we've And solutions to duration. as long products products out with or available, benefits looking short

Wilma Jackson Burdis

favorable especially little sounds it well. touched dated as as well, somewhat you're the continue to but as -- for fixed. to think annuities, environment sell to I looks products mentioned, And like you actually me you a bit longer me seeing this earlier on

So is you're what that seeing?

Kevin Hogan

continues And environment able kind The the earlier, continue is mentioned products, the value there. the these we being to environment demand to of especially I excellent at to rate for the annuities see. adviser anticipate that among think be as I products. community of our understands other definitely

index the fixed much very the consistently And maybe fixed traditional a all over part RILA I the we're a would annuity of lot so indexed to But way been of the still then the investor than that yes, mean, variable the a that's interested but for annuity. bit where a bit for appeals more has demand reflective growing appetite particular risk be a annuity, is variable to There's demand are. of an appetite The of of speaks changes rate annuity a little seeing little time. annuity. annuity. immediacy demand a traditional appetite aggressive And not to more for in

the attractive. annuity board, environment across for the think industry very remains the I So

Operator

next Our Josh of Bank from question America. comes Shanker of

Joshua Shanker

pushed about free earnings, the you I cash repurchase be given at want whatnot. just buffer be your optimization on there and any activity strong M&A you it that the you recent higher the not in you How your flow calls long-term amount just said quarter. excess from the have, much capital want returning And to conversion have, overall? conference and have but to just would transactions than capital are talk remain thoughts do can whether all about in to shareholders

Elias Habayeb

to position. I a position. Elias. would So it's this, What in in balance our make very a We've sheet sure Josh, it's managing been is is very strong proactive strong say in it

Our capital above targets. ratios are our

financial kind grow time. continuing and above parent And flows opportunities where other opportunities in investing Our we're We've from which been kind with a our out are. on been of to our balancing we've is there the of there pretty to kind disciplined perspective, improve are comes return when liquidity capital over of earnings giving business, and distribution exploring. an parent shareholders it flexibility, needs pursuing cash to attractive back cash is

there. which strong our balance good I think continues we our value. to job I if at it is to of So you share date, sheet and And position, part grow a per X be shareholder done we've to the in have very look pretty think create a earnings levers

So we're to that. deliver position good on in a

Joshua Shanker

with line you in to get And leverage. to ratios your long so I about above we capital the target out range the for intend your or do mean term, to if expect goals down think of you capital operate or in those desired long-term for do modeling

Elias Habayeb

balance management look as we we kind well is risk the our XXX to way -- of the profile informs health or ratio sheet. balance perspective. we threshold be So look bright the do. from at. capital set balance sheet, And XXX metrics the the that not it's we want just profile just leverage rate sorry, or for at balance look look we a looking know, not the line that at XXX whatever. liquidity our as to ratios, The But sheet way the profile, and of us where of that a our RBC you we've what are has as do XXX X of is the at at to that have of sheet, the leverage not with it's us X or The or it we at comfortable metric.

So sheet. at balance after looking our collectively profile decisions make the we it at collective look of and the

Operator

question today Cowen. Dan from TD final Our of comes of Bergman

Daniel Bergman

see for to heading environment still you'd a if or rate bit you had caused And like you wanted maybe broadly long-term expect pressure? alternative Maybe returns. any at There more interest items one-off to the initial to show long-term improvement. just view expect there the nice just continued returns in it and I noise XXXX, into then be on quarter. little were remarks, below Based prepared alternative in first, into ongoing what fourth just sounded levels, could some alternatives back on quarter. the are the But the would some investment higher sequential quarter, in expectations but

Elias Habayeb

we had quarter. listen, the in a So quarter good third really

have line look been. been your trend at what's improving. returns To point, the you If the

funds another to that We the quarter going good quarter quarter good foreign in. we had corporate as the we think I it's to be invested fourth given a benefit third had expect FX and the event as be don't some on

the it our is what will and where the was. today, be between third best we know quarter second insight based on So quarter where

influence around continue to right to the variable now to Looking returns expectation into that in range. X% our know, It's what's and macro listen, we beyond early income. it. believe as things in factors 'XX, anything obviously, of expectation other X% could predict long-term long-term investment our And there's being you

Daniel Bergman

like a That's sounded it. really driven It quick the insurance. just life And one earnings by maybe helpful. favorable then were strong Got there mortality. on

in should in from more kind volatility the and business? quarter on or So impact you give color to experience change earnings wanted to seeing I the if the just that expect rate trends in levels little you're see And we of bit go-forward business? run recaptured a any could

Elias Habayeb

So business. the with start me recaptured let

our to potential impact With -- to economic can run of look think on basis decision So a be volatile don't look of volatility on mortality be we higher. lot pricing on experience think their volatility, quarter there mortality. lower, as meaningful But last be to from that back there. is on a and and It if an our annual made that be listen, to treaty. earnings limited tend you mortality, around we expectations seasonality was and rate adds forward, recapture mortality respect sense we any fourth from experiencing in with been that What the third part. incremental quarter-to-quarter the it. recapturing line we first more and quarter could or second quarter-to-quarter, tend we've to years, better couple from And

Kevin Hogan

many, Yes. and Life focusing which What that sensitive. right -- range interest is well with business. I in And automated really but on pricing digital had been long underwriting comfortable We're just focused product years. mortality, but would was recently, We've our worked are less the time. not very within just mortality that expectations suite off. paying mean, a made in pricing leading very for quarter now, we've hard I many We've the We've say we're expectations. not on investments for just I the within a third would add, term capability look,

the about the we good gap serve feel in the position to really So need protection the for U.S.

that. shown has consistent growth Our

even our to with the business. in what of very in But from a large terms time. position the In be portfolio, mortality volatile Life comfortable can time be, we're mortality will

So thanks, everybody.

joining work to and good achieve secure help I'm all quarter grateful with of call, public has deliver have living I our plan, to purpose every to years my been X share futures. a want thanks we the remarkable save As everybody, of to where initial conclude our a all And I and of for to a people words day for day. take offering. This Corebridge. colleagues action and for at financial outstanding quarter. Thanks, since your gratitude you, we're few after ability today, your

Operator

today's for Ladies and you Thank gentlemen, this joining. concludes call.

your may lines. You disconnect

Corebridge Financial (CRBG) 5 Nov 242024 Q3 Earnings call transcript