Corebridge Financial has reported a net income of $2.4 billion in Q3 following the completion of its initial public offering in September, in which parent company AIG sold approximately 12.4% of its common stock.
This compares to a net income of $1.4 billion in the prior-year quarter, with Corebridge stating that the change was driven by higher realised gains partially offset by lower net investment income.
The company also completed its annual actuarial assumption review during the quarter which reduced pre-tax income by $6 million in the current quarter.
Premiums and deposits were $8.8 billion for Q3, up from $7.1 billion in the prior-year quarter. These results reflect strong Individual Retirement deposits, suggests Corebridge, as well as solid Group Retirement deposits and steady Life Insurance premiums and deposits.
Additionally, Corebridge benefited from increased transactional activity in its Group Retirement and Institutional Markets businesses. Excluding transactional businesses such as pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions, premiums and deposits were up 11%.
Meanwhile, adjusted pre-tax operating income (APTOI) was $423m, a 51% decline compared to the prior year quarter, which the firm states is largely related to the impact of capital markets and structural changes in the business profile, including implementation of the company’s new capital structure, as well as divestitures.
Net investment income was $2.2bn for Q3, a 28% decline compared to the prior year quarter largely driven by lower variable investment income. Net investment income on an APTOI basis was $2bn for the third quarter of 2022, down $0.5bn year-over-year primarily driven by lower variable investment income partially offset by higher base portfolio income.
Kevin Hogan, President and Chief Executive Officer of Corebridge, commented, “Our initial public offering marked an important milestone in our journey as Corebridge Financial. I want to thank all of our employees and partners who have worked together to build a strong company with a proud past and a bright future.
“This was a very good quarter for Corebridge, and our performance demonstrates the power of our franchise and the competitive strengths of our businesses. We delivered robust sales and deposit flows across all four businesses and we are gaining momentum from some of the most attractive pricing conditions in recent history.
“Rising interest rates and wider credit spreads have led to an important inflection point where we have moved from base net investment spread compression to base net investment spread expansion.
“We made significant progress on our growth, investment partnership and efficiency strategies, which will serve as the foundation to achieve our financial targets. As we look to the strength of our balance sheet, the consistency of our cash flows and the diversification of our businesses and earnings sources, we are confident in our ability to return significant capital to shareholders through a combination of dividends and share repurchases.”
