Corebridge Financial, Inc. ((CRBG)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Corebridge Financial’s recent earnings call conveyed a mixed sentiment, highlighting strong organic growth and significant capital returns, yet acknowledging some short-term challenges. The company demonstrated resilience with a robust balance sheet and strategic focus, although it faces near-term headwinds in specific segments.
Strong Organic Growth
Corebridge Financial reported impressive organic growth, achieving total premiums and deposits of $12.3 billion. The Individual Retirement sales of the RILA product reached nearly $800 million in the third quarter, totaling $1.7 billion year-to-date. This reflects a robust demand for their offerings, showcasing the company’s ability to capture market interest effectively.
Institutional Markets Performance
The Institutional Markets segment experienced its strongest sales quarter since Corebridge’s IPO. Both GICs and pension risk transfer transactions saw exceptional growth, contributing to a 19% increase in total reserves. This performance underscores the company’s strength in institutional markets and its capacity to drive significant growth in this area.
Record Capital Return
Corebridge has returned more than $1.4 billion to shareholders through buybacks and dividends year-to-date, aiming for a payout ratio of 60% to 65%. This record capital return demonstrates the company’s commitment to delivering value to its shareholders and maintaining a shareholder-friendly capital allocation strategy.
Robust Balance Sheet
The company maintains strong capital ratios above targets, with holding company liquidity of $1.8 billion. A transformative VA reinsurance transaction has been executed to optimize capital efficiency, highlighting Corebridge’s strategic focus on maintaining a robust financial position.
Base Spread Compression
Corebridge faced a decline in the Individual Retirement base spread yield by 7 basis points quarter-over-quarter. This was due to asset reallocation and marginal compression from new business, presenting a short-term impact on the company’s financials.
Higher Compensation-Related Expenses
The company experienced a short-term increase in expenses across all segments, driven by higher compensation-related expenses and a one-time medical expense accrual. This rise in expenses poses a temporary challenge to Corebridge’s cost management efforts.
Lag in Real Estate Equity Performance
Alternative investment returns were $0.11 per share below long-term expectations, with a continued lag in real estate equity performance. This underperformance in real estate investments remains a concern, affecting the overall returns from alternative investments.
Forward-Looking Guidance
Looking ahead, Corebridge Financial remains optimistic about its future performance. The company delivered robust financial results in the third quarter of 2025, with total premiums and deposits of $12.3 billion and a net inflow of $1.4 billion. Corebridge aims to maintain a 12% to 14% ROE and an average EPS growth rate of 10% to 15% over time, supported by strong capital management and strategic initiatives.
In conclusion, Corebridge Financial’s earnings call highlighted a blend of strong growth and capital return achievements, tempered by short-term challenges in spread yield and investment returns. The company’s robust balance sheet and strategic focus areas position it well for future growth, despite facing near-term headwinds in specific segments.