Corebridge Financial (CRBG) Q3 2025 earnings summary

Executive summary

• Net income rebounded to $144 million in Q3 2025, reversing a $1.2 billion loss in the prior year, driven by higher premiums, improved investment income, and lower realized losses, partially offset by higher policyholder benefits and interest credited.

• Premiums and deposits reached $12.3 billion, up 34% year-over-year, marking the highest since IPO and reflecting strong product demand and diversified offerings.

• $509 million was returned to shareholders in the quarter, including $381 million in share repurchases, for an 80% year-to-date payout ratio.

• The VA reinsurance transaction and divestitures simplified the business, improved risk profile, and freed up significant capital.

• Robust balance sheet maintained, with insurance company capital ratios above target and $1.8 billion in holding company liquidity.

Financial highlights

• Adjusted pre-tax operating income (APTOI) was $654 million, down 29% year-over-year, mainly due to actuarial assumption updates and prior year one-time items.

• Operating EPS was $0.96, down 22% year-over-year; adjusted ROAE was 10.3%, down from 13.1% in the prior year quarter.

• Fee income increased 7% year-over-year, while spread income declined only 1% despite Fed rate cuts in 2024.

• Book value per share was $25.45; adjusted book value per share was $38.03 at quarter end.

• Assets under management and administration reached $380.3 billion at September 30, 2025.

Outlook and guidance

• Alternative investment returns are expected to remain below the long-term 8%-9% target.

• EPS will be temporarily lower in coming quarters due to timing of VA transaction proceeds deployment, but the transaction is expected to be accretive to EPS by H2 2026.

• Long-term targets reaffirmed: 12%-14% ROE, 10%-15% annual EPS growth, and 60%-65% payout ratio.

• Share repurchases will remain elevated in the near term, supported by a $2 billion authorization increase.

• The company is monitoring regulatory changes, including NAIC initiatives and DOL fiduciary rules, which may impact capital requirements and business practices.