Corebridge Still Bullish on Fixed Annuity Sales
The company reported a $1.3 billion loss for the quarter on $3.3 billion in revenue, compared with a $168 million net loss on $4.1 billion in revenue for the fourth quarter of 2022.
Adjusted pre-tax operating income, which excludes the effects of changes in the estimated value of derivatives, investments and benefits promises, increased to $661 million, from $610 million.
Variable annuity premiums and deposits fell to $350 million, from $652 million.
Group retirement: Hogan noted that about $42 billion of the $122 billion of assets at the Corebridge group retirement business are at the “out-of-plan” business.
Many plan members end up buying fixed annuities and indexed annuities outside their employers’ retirement plans.
Elias Habayeb, the Corebridge chief financial officer, said the plans are naturally seeing asset outflows as older workers retire. Those plan participants tend to have higher guaranteed minimum interest rates, Habayeb said.
At the group retirement plans, “our net inflows are dominated by our younger-age cohorts, with lower guaranteed minimum interest rates,” he said.
Corebridge CEO Kevin Hogan. Credit: Corebridge