Corebridge Financial has reported a $459 million net loss for the first quarter of 2023, representing a 114% decrease compared to the same period last year.
The company states that the change was largely driven by realized losses recorded for the Fortitude Re funds withheld embedded derivative.
At the same time, net investment income for Q1 was $2.7 billion, a 4% increase compared to the prior year quarter, while net investment income on an APTOI basis was $2.3 billion, representing a 1% increase compared to Q122.
Corebridge noted that the increase largely was due to higher base portfolio income, which grew $419 million, or 23%, compared to the prior year period. This was partially offset by lower variable investment income which declined $272 million, or 91%, over the same period.
Elsewhere, Corebridge’s premiums and deposits for Q1 were $10.3 billion, representing a 45% increase compared to the prior year quarter.
Within its Individual Retirement segment, premiums and deposits increased $1.0 billion, or 26%, as compared to the prior year quarter, which was mostly driven by growth of fixed and fixed index annuity deposits, partially offset by lower variable annuity deposits.
Additionally, within the Group Retirement segment, premiums and deposits increased $358 million, or 19%, as compared to Q122. Corebridge noted that the increase was due to higher plan acquisitions and out-of-plan fixed annuity deposits, partially offset by lower out-of-plan variable annuity deposits.
Kevin Hogan, President and Chief Executive Officer of Corebridge, commented: “Corebridge has had a terrific start to the year, delivering another excellent quarter while advancing our key strategic initiatives. We remain disciplined in our capital allocation and continue to balance investments in long-term growth while maintaining a strong balance sheet with ample liquidity and capital.”
He continued: “We generated strong sales with attractive margins across our businesses, and positive net flows in our general account. On a year-over-year basis, our premiums and deposits increased 45% and our core sources of income grew 15%, with base spread income up 38%. We are positioned for continued success, supported by a strong business model, broad distribution platform, diversified core earnings and a robust risk management approach.
“Last week, our Board of Directors approved a share repurchase program of up to $1 billion. This is an important milestone toward our commitment to provide an attractive return to shareholders.”
