American multinational financial services company, Corebridge Financial has announced its fourth quarter of 2023 financial results, reporting a net loss of $1.3 billion.
This figure compares to a net loss of $207 million in Q4 2022. According to the company, the change was largely driven by realised losses recorded for the Fortitude Re funds withheld embedded derivative, partially offset by higher net investment income.
Corebridge also reported an adjusted pre-tax operating income (APTOI) of $820 million in Q4 2023, a 16% increase over the prior year quarter due to higher net investment income, partially offset by lower variable investment income.
The firm noted that, excluding variable investment income, APTOI grew 20% over the same period, primarily the result of higher base spread income and expense efficiencies, partially offset by lower underwriting margin.
Net investment income increased 18% in the quarter, to $3.0 billion, and net investment income on an APTOI basis increased 11%, to $2.6 billion, over the same period.
This improvement, Corebridge explained, was due in large part to higher base portfolio income, which grew $364 million, or 17%, over the prior year quarter.
The increase in net investment income was partially offset by variable investment income which declined $19 million, or 83%, over Q4, the firm noted.
At $10.5 billion Corebridge’s premiums and deposits saw an increase of 20% in the quarter. Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions), premiums and deposits grew 21% over the same period.
According to the company, these results mainly reflect higher fixed annuity and fixed index annuity deposits, partially offset by lower variable annuity deposits in Individual Retirement and Group Retirement.
Corebridge also released its Full Year 2023 results, reporting a net income of $1.1 billion, a lower figure compared to the $8.2 billion reported the year prior, and a net investment income of $11.1 billion.
APTOI increased to $3.2 billion, and excluding variable investment income, APTOI grew 26% over the same period. Premiums and deposits increased 26%, to $39.9 billion, compared to 2022, as well as base spread income, which increased 30%, to $3.7 billion.
Kevin Hogan, President and Chief Executive Officer of Corebridge, said: “Corebridge reported full year adjusted after-tax operating income of $2.6 billion, a 12% increase, executing on our strategic and operational priorities while capitalizing on market opportunities.
“We increased annual sales across our diversified portfolio of spread-based products by 60% and total company premiums and deposits by 26% year over year. We also grew general account assets by 5% to $220 billion, and improved base spread income by 30% in 2023, contributing to healthy margins across our high-quality businesses.”
He continued: “Corebridge maintains a robust financial position and continues to generate consistent cash flows, supporting a strong balance sheet and meaningful capital return. Over the last five years, our insurance companies have distributed over $2 billion per year while maintaining a Life Fleet RBC Ratio over 400%, demonstrating the resilience of our business franchise through market cycles. Additionally, we returned $2.2 billion of capital to shareholders in 2023 with $1.1 billion in the fourth quarter alone.”
“Corebridge is positioned for continued success in 2024,” Hogan stated, “supported by our diversified business model, broad distribution platform, disciplined risk management, strategic investment partnerships and financial flexibility.
“We remain focused on creating long-term value for shareholders, evidenced by the announced sales of our international operations, and are confident in our ability to deliver attractive levels of capital return. We will continue to look across our portfolio to allocate resources where the available risk-adjusted returns are highest and where customer needs are greatest.“
