Corebridge Financial reported a net loss of $664 million for the first quarter of 2025, compared to net income of $878 million in the same period last year.
The decline was attributed primarily to higher realized losses, including from the Fortitude Re funds withheld embedded derivative, as well as an unfavorable change in the fair value of market risk benefits. These factors were partially offset by an increase in net investment income.
Adjusted pre-tax operating income (APTOI) for the quarter was $810 million, representing a 3% year-over-year decline.
When excluding variable investment income (VII), notable items, and results from international businesses, APTOI fell 10%, which the company said was due mainly to the impact of short-term interest rate changes and higher interest expenses related to pre-funding the company’s April 2025 debt maturity.
Core sources of income were $1.8 billion, also down 3% from the prior-year quarter. This decline was linked to the sale of Corebridge’s international operations and more favorable notable items reported in Q1 2024.
On an adjusted basis, excluding notable items and international businesses, core sources of income rose 1%, supported by growth in fee income and underwriting margin, though partially offset by reduced base spread income.
Premiums and deposits totaled $9.3 billion, marking a 12% decrease from what the company described as a historically strong Q1 2024. Adjusted for transactional activity such as pension risk transfers, guaranteed investment contracts, and group retirement plan acquisitions – as well as the sale of international businesses – premiums and deposits declined 6%.
This was primarily due to a reduction in fixed annuity deposits, though partially offset by increases in fixed index annuity and registered index-linked annuity (RILA) deposits.
Corebridge president and CEO Kevin Hogan (pictured above) said the company remains committed to delivering value to shareholders and clients, emphasizing the importance of its mission during periods of uncertainty.
Meanwhile, Fortitude Re also recently signed and closed a US$4 billion reinsurance transaction with Taiyo Life Insurance Company. The deal involves the reinsurance of a significant portion of Taiyo Life’s whole life annuity portfolio to Fortitude Re.
What are your thoughts on this story? Please feel free to share your comments below.
