Corebridge Financial Announces Transformative Individual Retirement Variable Annuity Transaction with Venerable
HOUSTON--(BUSINESS WIRE)--Jun 26, 2025--
Corebridge Financial, Inc. ('Corebridge' or the 'Company') (NYSE: CRBG) today announced that it has entered into an agreement with CS Life Re, a subsidiary of Venerable Holdings, Inc. ('Venerable') to reinsure all the variable annuities of its Individual Retirement business, with account value totaling $51 billion as of March 31, 2025. The transaction is valued at $2.8 billion, consisting of both ceding commission and capital release, and will generate approximately $2.1 billion of net distributable proceeds after-tax for Corebridge 1.
Kevin Hogan, President and Chief Executive Officer of Corebridge, said, 'This is a transformative transaction that repositions the company by exiting Individual Retirement variable annuities. This transaction delivers significant value for Corebridge and its shareholders. We are reaffirming our financial targets while reducing risk and maintaining our diversified business model.
'We expect to use the proceeds to accelerate our capital management objectives, including a substantial majority returned via share repurchases, with the remainder to support organic growth. Our Board of Directors approved a $2 billion increase to our share repurchase authorization in connection with this transaction.
'We are pleased to partner with Venerable on this transaction given their deep expertise and leadership in the variable annuity reinsurance business.'
Transaction Overview
Financial Overview
Broad Individual Retirement Product Platform
Conference Call
Corebridge will host a conference call at 8:30 a.m. EDT on Thursday, June 26, 2025, to review the details of this announcement. The call is open to the public and can be accessed via a live, listen-only webcast in the Investors section of corebridgefinancial.com. A replay will be available after the call at the same location.
Morgan Stanley & Co. LLC acted as financial advisor, Oliver Wyman as actuarial advisors, and Willkie Farr & Gallagher LLP acted as legal counsel to Corebridge.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $400 billion in assets under management and administration as of March 31, 2025, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube and Instagram.
In the discussion below, 'we,' 'us' and 'our' refer to Corebridge and its consolidated subsidiaries, unless the context refers solely to Corebridge as a corporate entity.
Cautionary statement regarding forward-looking information
Certain statements in this press release and other publicly available documents may include statements of historical or present fact, which, to the extent they are not statements of historical or present fact, constitute 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as 'expects,' 'believes,' 'anticipates,' 'intends,' 'seeks,' 'aims,' 'plans,' 'assumes,' 'estimates,' 'projects,' 'is optimistic,' 'targets,' 'should,' 'would,' 'could,' 'may,' 'will,' 'shall' or variations of such words are generally part of forward-looking statements. Also, forward-looking statements include, without limitation, all matters that are not historical facts. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Corebridge. There can be no assurance that future developments affecting Corebridge will be those anticipated by management.
Any forward-looking statements included herein are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected or implied in such forward-looking statements, including, among others, risks related to:
Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission ('SEC'). Unless specifically noted otherwise, forward-looking projections are based on our financial statements as filed with the SEC in our quarterly report on Form 10-Q for the quarter ended March 31, 2025.
Use of Non-GAAP Financial Measures
This release includes a reference to Adjusted after-tax operating income ('AATOI'), a non-GAAP financial measure. AATOI is derived by excluding the tax effected adjusted pre-tax operating ('APTOI') adjustments described below, as well as the following tax items from net income attributable to us:
APTOI is derived by excluding the items set forth below from income (loss) before income tax expense (benefit). These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and recording adjustments to APTOI that we believe to be common in our industry. We believe the adjustments to pre-tax income are useful for gaining an understanding of our overall results of operations.
APTOI excludes the impact of the following items:
FORTITUDE RE RELATED ADJUSTMENTS:
The modified coinsurance ('modco') reinsurance agreements with Fortitude Re transfer the economics of the invested assets supporting the reinsurance agreements to Fortitude Re. Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI.
The ongoing results associated with the reinsurance agreement with Fortitude Re have been excluded from APTOI as these are not indicative of our ongoing business operations.
INVESTMENT RELATED ADJUSTMENTS:
APTOI excludes 'Net realized gains (losses)', except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities, or those recognized as embedded derivatives at fair value, are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances).
MARKET RISK BENEFIT ADJUSTMENTS ('MRBs'):
Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain guaranteed minimum withdrawal benefits ('GMWBs') and/or guaranteed minimum death benefits ('GMDBs') which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through 'Change in the fair value of MRBs, net' and are excluded from APTOI. Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI.
OTHER ADJUSTMENTS:
Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities. The excluded adjustments include, as applicable:
Key Operating Metrics and Key Terms
This release includes a reference to Life Fleet RBC Ratio. Life Fleet means American General Life Insurance Company ('AGL'), The United States Life Insurance Company in the City of New York ('USL') and The Variable Annuity Life Insurance Company ('VALIC'). Life Fleet RBC Ratio is the risk-based capital ('RBC') ratio for the Life Fleet. RBC ratios are quoted using the Company Action Level.
View source version on businesswire.com:https://www.businesswire.com/news/home/20250625301220/en/
CONTACT: Işıl Müderrisoğlu (Investors):[email protected]
Matt Ward (Media):[email protected]
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: Corebridge Financial
Copyright Business Wire 2025.
PUB: 06/26/2025 06:45 AM/DISC: 06/26/2025 06:44 AM
http://www.businesswire.com/news/home/20250625301220/en
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
B&G Foods (NYSE:BGS) Has Some Way To Go To Become A Multi-Bagger
There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after investigating B&G Foods (NYSE:BGS), we don't think it's current trends fit the mold of a multi-bagger. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for B&G Foods: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.073 = US$200m ÷ (US$3.0b - US$229m) (Based on the trailing twelve months to March 2025). Thus, B&G Foods has an ROCE of 7.3%. In absolute terms, that's a low return and it also under-performs the Food industry average of 10%. Check out our latest analysis for B&G Foods Above you can see how the current ROCE for B&G Foods compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering B&G Foods for free. There hasn't been much to report for B&G Foods' returns and its level of capital employed because both metrics have been steady for the past five years. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. So unless we see a substantial change at B&G Foods in terms of ROCE and additional investments being made, we wouldn't hold our breath on it being a multi-bagger. On top of that you'll notice that B&G Foods has been paying out a large portion (113%) of earnings in the form of dividends to shareholders. Most shareholders probably know this and own the stock for its dividend. In a nutshell, B&G Foods has been trudging along with the same returns from the same amount of capital over the last five years. It seems that investors have little hope of these trends getting any better and that may have partly contributed to the stock collapsing 74% in the last five years. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere. On a final note, we found 2 warning signs for B&G Foods (1 doesn't sit too well with us) you should be aware of. While B&G Foods may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
35 minutes ago
- Yahoo
When Should You Buy Ford Motor Company (NYSE:F)?
Ford Motor Company (NYSE:F) led the NYSE gainers with a relatively large price hike in the past couple of weeks. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Let's take a look at Ford Motor's outlook and value based on the most recent financial data to see if the opportunity still exists. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Good news, investors! Ford Motor is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $13.76, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Ford Motor's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Ford Motor Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Ford Motor's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. Are you a shareholder? Since F is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on F for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy F. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. If you want to dive deeper into Ford Motor, you'd also look into what risks it is currently facing. When we did our research, we found 2 warning signs for Ford Motor (1 is concerning!) that we believe deserve your full attention. If you are no longer interested in Ford Motor, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
an hour ago
- Yahoo
4 Things Retirees Should Never Sell To Build Their Retirement Savings
As you get older and your financial situation changes, you might be tempted to sell off retirement assets for short term gain, especially when things like inflation fear and economic turmoil play with your head. However, just because you're retired, it doesn't mean you can be impulsive with your savings. Read Next: Find Out: When people say that building wealth is a long game, they mean forever. Ensuring that you and your loved ones are financially secure takes its own special type of planning to guarantee that you benefit monetarily from your decisions and avoid seller's remorse. Here are four things retirees should never sell to build their savings, according to two experts in their fields. But if you're still looking to build your savings, take a look at the things retirees should sell. A house is often the first thing people think about selling when faced with savings struggles in retirement. Accessing your home's equity could provide much needed retirement funds, but it can also result in expensive moving costs, concerns about aging in place and getting a fair price amid volatile housing and rental markets. 'While [selling your primary residence] can make sense in some situations, it's important to weigh the potential downsides,' said Chad Gammon, certified financial planner (CFP), owner of Custom Fit Financial. 'A retiree who owns their home might underestimate the cost of purchasing a new home or renting. Additionally, the expense of preparing a home for sale can quickly add up without increasing the home's value.' For You: If you have debt or are still earning income when you retire, it might be a good idea to hold on to your life insurance policy, which can also help with things such as estate taxes, burial costs, unanticipated expenses and a means of ensuring that your children and grandchildren will be taken care of financially. 'While it can be tempting to surrender these policies for their cash value, it's essential to understand the broader benefits they provide,' said Chris Heerlein, CEO of REAP Financial, an SEC-registered investment advisory firm specializing in retirement and wealth management. 'Beyond the obvious death benefit, permanent policies can offer a tax-advantaged source of liquidity through policy loans or withdrawals, which can be a big help during unexpected expenses. 'I've worked with retirees who faced medical emergencies and were able to use their life insurance policies as a financial safety net,' Heerlein said. 'Selling the policy outright would have left them without this crucial backstop, forcing them to dip into retirement savings or take on debt.' Heirlooms hold sentimental value and are part of your legacy. Selling them may strain relationships, so 'before selling these items, it's a good idea to have a conversation with family members, as someone else may value and enjoy them,' said Gammon. 'Plus, you may later regret parting with the items.' The same goes for collectibles. Over time, the value of things like artwork, antiques, vintage cars and memorabilia collections can increase significantly. Impulsively selling valuable items during a time of financial need might cost you and yours a lot of money down the road. Determine the value of heirlooms and collectibles by having them appraised, and pass them down to family members or set condition for their transfer in your will. There are exceptions, but typically, your car doesn't add much to your wealth, and chances are, you won't get much back for it should you decide to sell. Although many Americans remain active as seniors, not having to commute and enjoying a quieter home life is what retirement is all about. Selling off one of multiple vehicles is a good idea in retirement, but it might be smart to hang on to your lone reliable car and avoid the inconvenience and expense of public transportation and ride-sharing options in your area. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 4 Things Retirees Should Never Sell To Build Their Retirement Savings Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
