Corebridge Financial (CRBG) 1 Aug 24 2024 Q2 Earnings call transcript

Corebridge Financial's second quarter earnings call for 2024 highlighted a robust performance, underscoring the company's diversified business model and strong balance sheet. The company reported a 9% increase in operating earnings per share (EPS) year-over-year, with a run rate operating EPS growth of 12%. This growth was driven by the collective performance of its four market-leading businesses, which capitalized on attractive market conditions and strong customer demand.

Market-Leading Businesses Driving Growth and Value Creation

Corebridge Financial's diversified business model, including its Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets divisions, reported significant growth across all sectors. Notably, Individual Retirement enjoyed strong demand for its products, particularly fixed and fixed index annuities, which saw a 68% increase in quarterly sales compared to the previous year. This growth was driven by the company's extensive distribution platform and its ability to meet the unique needs of each major distribution partner, including banks and broker-dealers.

Strategic Expansion and Capital Efficiency

The company also announced its strategic expansion into Bermuda, which has begun ceding premiums to its affiliated Bermuda reinsurer. This move is expected to leverage Corebridge's new business origination capabilities more effectively and deploy capital more efficiently, creating value for shareholders. The company's focus on capital efficiency is further underscored by its successful execution of Corebridge Forward, an expense and modernization program that has reduced general operating expenses by 6%. This reduction has been achieved during a time of record growth for the company, demonstrating the company's ability to optimize its capital structure while maintaining a sound balance sheet.

Financial Stability and Dividend Policy

Corebridge Financial's financial position remains strong, with a liquidity profile above target and a holdings company liquidity of $1.9 billion. The company's strategy to return capital to shareholders was evident in the $575 million returned through dividends and share repurchases during the quarter. This commitment to shareholder value, coupled with the company's disciplined execution and strong balance sheet, positions Corebridge Financial well for future growth and success.

Outlook and Future Opportunities

Looking ahead, Corebridge Financial's focus on executing its strategy, optimizing capital, and leveraging its market-leading businesses is expected to drive continued growth and value creation. The company's diversified business model, strategic expansion into Bermuda, and commitment to capital efficiency provide a solid foundation for future success. With a strong market position, a growing need for retirement solutions, and a dedicated focus on helping individuals plan for secure financial futures, Corebridge Financial is well-positioned to capitalize on the opportunities ahead.