Corebridge Financial (CRBG) Status Update summary

Transaction overview and strategic rationale

• Announced a transformative reinsurance transaction to fully exit Individual Retirement Variable Annuity risk, reinsuring $51 billion of account value and divesting the related asset management business, including SAAMCO, under a flow reinsurance agreement with Venerable.

• The transaction is valued at $2.8 billion, with net distributable proceeds estimated at $2.1 billion after tax, including a $2.2 billion ceding commission and $0.5 billion capital release.

• Majority of proceeds will be used for share repurchases, with a $2 billion increase in repurchase authorization approved by the board.

• The deal is expected to be accretive to EPS on a pro forma basis after share repurchases, offsetting lost earnings by the second half of 2026 and improving the company’s growth profile.

• Transaction is consistent with the strategic goal of optimizing the balance sheet, monetizing a declining business at an attractive valuation, and reducing operational complexity.

Financial targets, impact, and risk profile

• Reaffirmed key financial targets: 12-14% ROE, RBC above 400%, 60-65% payout ratio, and 10-15% annual EPS growth.

• Transaction valued at 9-10x forward operating earnings, monetizing a book with declining contribution.

• Reduces risk, especially tail risk and policyholder behavior risk, and strengthens the balance sheet, with a Life Fleet RBC ratio increase of over 50 points before share repurchases.

• Sensitivity of fee income to S&P 500 changes will decrease from $85 million to $50 million per 10% move, reducing earnings volatility.

• Post-transaction, 99% of net GAAP liabilities will be from non-legacy products, with no exposure to LTC, pre-crisis VAs, and nominal ULSG exposure.

Execution, timing, and capital management

• Transaction expected to close in stages: AGL in Q3 2025 (about 90% of proceeds), USL and investment adviser sales in Q4 2025, subject to regulatory approvals.

• Proceeds will be available for share repurchases after regulatory and dividend processes; capital deployment will be disciplined and phased.

• Free cash flow conversion may be modestly negative in the short term but is expected to normalize as proceeds are deployed.

• Committed to maintaining a 60-65% payout ratio, with temporary increases as proceeds are deployed.

• Transaction delivers significant value upside and supports capital management objectives.