Corebridge Financial has reported a net income of $2.1 billion in the third quarter of 2023, representing a 13% decrease compared to the prior year quarter, largely driven by lower realised gains.
Adjusted pre-tax operating income (APTOI) was $813 million, a 29% increase over the prior year quarter. Excluding variable investment income, APTOI was $776 million, a 23% increase over the prior year quarter, as a result of higher base spread income, partially offset by higher interest expense on financial debt.
At the same time, net investment income was $2.7 billion, a 23% increase over the prior year quarter, while net investment income on an APTOI basis was $2.5 billion, a 21% increase over the prior year quarter.
Corebridge noted that the improvement was due in large part to higher base portfolio income, which grew $432 million, or 22%, over the prior year quarter. This increase in net investment income was supplemented by variable investment income which grew $38 million over the same period.
Elsewhere, Corebridge’s premiums and deposits were $9.1 billion, a 4% increase over the prior year quarter.
Within its Individual Retirement segment, premiums and deposits increased $169 million, or 4%, as compared to the prior year quarter largely driven by growth of fixed index annuity and fixed annuity deposits, partially offset by lower variable annuity deposits.
Additionally, within the Group Retirement segment, premiums and deposits decreased $208 million, or 10%, from the prior year quarter due to lower plan acquisitions and out-of-plan variable annuity deposits, partially offset by higher out-of-plan fixed annuity deposits.
Kevin Hogan, President and Chief Executive Officer of Corebridge, said, “I am pleased to report outstanding progress over what has been an extraordinary twelve months since our initial public offering. Corebridge has executed with focus and precision, increasing premiums and deposits by 28% over the first nine months of 2023 compared to the first nine months of 2022, and growing base spread income 34% over this same time while strengthening our balance sheet. Since our IPO, we have returned $1.4 billion of capital to shareholders and achieved or contracted on 81% of Corebridge Forward target run-rate savings.”
“This quarter, we extended the positive momentum we have been building from the outset. Corebridge once again generated strong results, achieving a 28% increase in operating EPS and adding 230 basis points to adjusted return on average equity. Further, we are unlocking an additional $1.2 billion in shareholder value through the sale of our international operations as we streamline our portfolio to focus on our businesses in the United States,” he continued.
“We are confident in our ability to achieve our financial targets while maintaining a disciplined approach that pursues sustainable growth, protects our strong balance sheet, and drives shareholder value. I want to thank all of our employees and partners who made our first year as a public company such a successful one,” he concluded.
