Why Offer Fixed Annuities? Corebridge CEO Explains

Pretax operating results, which exclude changes in the value of assets and benefit obligations, increased to $692 million, from $679 million.

Individual annuity sales increased 68%, to $6.8 billion.

Sales of traditional variable annuities fell 10%, to $416 million, and sales of nonvariable indexed annuities fell 3%, to $2.2 billion. But sales of fixed annuities, including multi-year guaranteed annuities, or MYGA contracts, increased 226%, to $4.1 billion.

Why MYGAs? Hogan told the analysts that Corebridge has plenty of capital.

The company also has a new reinsurance facility in Bermuda it can use to get the most of out of its capital, and it upgraded its systems recently to cope with strong demand.

Meanwhile, the recent rebound in interest rates helped Corebridge reposition the investment portfolio that supports the annuities, Hogan said.

Rates may be starting to come down, but “the margins are locked in on the in-force, and we price new business according to what’s available now,” he said.

Corebridge CEO Kevin Hogan. Credit: Corebridge