Corebridge Aims for 10-15% EPS Growth, $2.1B Share Repurchase Plan

Corebridge Financial outlines a 10-15% EPS growth target and a $2.1 billion share repurchase plan following a transformative reinsurance deal. The company delivered strong Q2 2025 financial results and remains focused on driving shareholder value.

Corebridge Financial, Inc. (CRBG) has outlined a robust financial strategy following the completion of a transformative reinsurance deal. The company reported strong second-quarter 2025 results and remains committed to driving shareholder value. Kevin Timothy Hogan, President and CEO, highlighted the significance of the variable annuity (VA) reinsurance transaction, which represents a full exit from Individual Retirement variable annuity financial risk [1].

The VA transaction, valued at approximately $2.8 billion, reflects a 9-10x forward operating earnings multiple, significantly above the current valuation. This deal generated $2.1 billion in net distributable proceeds, with the majority allocated to share repurchases and the remainder for investment and organic growth. The company expects to return the substantial majority via share repurchases, with the remainder supporting organic growth [2].

Corebridge Financial's second-quarter adjusted pretax operating income of $942 million or operating earnings per share of $1.36, a 20% increase year-over-year, underscores its financial strength. The company's individual retirement sales exceeded last year's record second quarter, and cumulative sales of the new RILA product surpassed $1 billion within nine months of launch. Life Insurance underwriting margin increased by 12% year-over-year, and adjusted pretax operating income rose by 44% [2].

The company's strategic pillars, including organic growth, balance sheet optimization, expense efficiency, and active capital management, are expected to deliver an average annual EPS growth target of 10-15% over time. The VA transaction has simplified the balance sheet, reducing risk and improving operating leverage. Corebridge Financial is well-positioned to continue its growth trajectory, with a focus on expanding sales in growing product lines and businesses, leveraging its Bermuda strategy, and pursuing digitization and operational efficiency initiatives [1].

Management reaffirmed its objective to grow EPS by 10% to 15% on average per year, with a target payout ratio of 60-65%. The company expects the majority of the $2.1 billion reinsurance proceeds to be used for share repurchases, with deployment anticipated to begin in the fourth quarter, pending regulatory processes. The company also aims to grow insurance company dividends by 5% to 10% for 2025 [2].

Corebridge Financial's strong Q2 2025 results, coupled with its strategic initiatives and transformative reinsurance deal, position the company for continued growth and shareholder value creation. The company's commitment to disciplined execution and strategic repositioning will be closely watched by investors and financial professionals.

References:
[1] https://www.marketscreener.com/news/corebridge-financial-second-quarter-2025-financial-results-presentation-ce7c5edbd988ff2c
[2] https://seekingalpha.com/news/4479211-corebridge-outlines-eps-growth-target-of-10-15-percent-and-2_1b-share-repurchase-plan