Corebridge Financial's Q4 2024: Contradictions Unveiled in Income Growth, Bermuda Strategy, and Annuity Sales

These are the key contradictions discussed in Corebridge Financial's latest 2024Q4 earnings call, specifically including: Base Spread Income Expectations, Bermuda Capital Management Strategy, Fixed Annuity Sales Performance, and Open Market Repurchases:



Strong Financial Performance:
- Corebridge reported fourth-quarter adjusted pretax operating income of $878 million, with operating earnings per share of $1.23, up 18% year-over-year.
- This performance was supported by organic growth, balance sheet optimization, and expense efficiencies.

Capital Management and Return:
- Corebridge increased its share repurchase authorization by $2 billion and raised the quarterly dividend to $0.24 per share.
- The company's strong balance sheet and financial flexibility allowed for these capital management initiatives.

Reinsurance Strategy and Asset Origination:
- Corebridge ceded over $12 billion of reserves to its Bermuda affiliate, with assets sourced through partnerships like Blackstone and BlackRock exceeding $43 billion in 2024.
- The strategy of strategic use of reinsurance and asset origination supports target returns and enhances balance sheet management.

Individual Retirement Segment Dynamics:
- Base spread income in the Individual Retirement segment declined by 18 basis points sequentially.
- This was attributed to the impact of recent rate cuts and lower floating rate assets, with expectations for recovery as reset cycles earn through.