v3.24.2.u1
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information 3. Segment Information
We report our results of operations consistent with the manner in which our chief operating decision maker reviews the business to assess performance and allocate resources.
We report our results of operations as five reportable segments:
•Individual Retirement – consists of fixed annuities, fixed index annuities and variable annuities.
•Group Retirement – consists of recordkeeping, plan administrative and compliance services, financial planning and advisory solutions offered in-plan, along with proprietary and limited non-proprietary annuities, advisory and brokerage products offered out-of-plan.
•Life Insurance – primary products in the United States include term life and universal life insurance. The International Life business issued individual and group life insurance in the United Kingdom and distributed private medical insurance in Ireland. On October 31, 2023 Corebridge completed the sale of Laya and on April 8, 2024 completed the sale of AIG Life U.K.
•Institutional Markets – consists of stable value wrap (“SVW”) products, structured settlement and pension risk transfer (“PRT”) annuities, guaranteed investment contracts (“GICs”) and Corporate Markets products that include corporate- and bank-owned life insurance (“COLI-BOLI”), private placement variable universal life and private placement variable annuity products.
•Corporate and Other – consists primarily of:
–corporate expenses not attributable to our other segments;
–interest expense on financial debt;
–results of our consolidated investment entities;
–institutional asset management business, which includes managing assets for non-consolidated affiliates; and
–results of our legacy insurance lines ceded to Fortitude Re.
We evaluate segment performance based on adjusted revenues and adjusted pre-tax operating income (loss) (“APTOI”). Adjusted revenues are derived by excluding certain items from total revenues. APTOI is derived by excluding certain items from income from operations before income tax. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and adjustments that we believe to be common to the industry. Legal entities are attributed to each segment based upon the predominance of activity in that legal entity.
APTOI excludes the impact of the following items:
Fortitude Re related adjustments:
The modified coinsurance (“modco”) reinsurance agreements with Fortitude Re transfer the economics of the invested assets supporting the reinsurance agreements to Fortitude Re. Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI.
The ongoing results associated with the reinsurance agreement with Fortitude Re have been excluded from APTOI as these are not indicative of our ongoing business operations.
Investment-related adjustments:
APTOI excludes “Net realized gains (losses)”, except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities or are recognized as embedded derivatives at fair value are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances).
Market Risk Benefits adjustments:
Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain guaranteed minimum withdrawal benefits (“GMWBs”) and/or guaranteed minimum death benefits (“GMDBs”) which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through “Change in the fair value of MRBs, net” and are excluded from APTOI.
Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI.
Other adjustments:
Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities. The excluded adjustments include, as applicable:
•restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;
•non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles;
•separation costs;
•non-operating litigation reserves and settlements;
•loss (gain) on extinguishment of debt, if any;
•losses from the impairment of goodwill, if any; and
•income and loss from divested or run-off business, if any.
The following table presents Corebridge’s operations by segment:
(in millions)Individual RetirementGroup RetirementLife InsuranceInstitutional MarketsCorporate & OtherEliminationsTotal CorebridgeAdjustmentsTotal Consolidated
Three Months Ended June 30, 2024
Premiums$30 $— $331 $167 $19 $— $547 $— $547 
Policy fees200 108 366 47 — — 721 — 721 
Net investment income(a)
1,405 487 322 489 18 (5)2,716 272 2,988 
Net realized gains (losses)(a)(b)
— — — — (9)— (9)(738)(747)
Advisory fee and other income108 83 1 1 8 — 201 — 201 
Total adjusted revenues1,743 678 1,020 704 36 (5)4,176 (466)3,710 
Policyholder benefits33 (2)627 394 — — 1,052 (3)1,049 
Change in the fair value of market risk benefits, net— — — — — — — 25 25 
Interest credited to policyholder account balances695 300 84 187 — — 1,266 8 1,274 
Amortization of deferred policy acquisition costs152 21 84 3 — — 260 — 260 
Non-deferrable insurance commissions94 30 16 5 1 — 146 — 146 
Advisory fee expenses38 32 1 — — — 71 — 71 
General operating expenses110 102 113 19 75 — 419 113 532 
Interest expense— — — — 132 (5)127 11 138 
Net (gain) on divestitures
— — — — — — — (241)(241)
Total benefits and expenses1,122 483 925 608 208 (5)3,341 (87)3,254 
Noncontrolling interests— — — — 24 — 24 
Adjusted pre-tax operating income (loss)$621 $195 $95 $96 $(148)$— $859 
Adjustments to:
Total revenue(466)
Total expenses(87)
Noncontrolling interests(24)
Income before income tax expense (benefit)$456 $456 
Three Months Ended June 30, 2023
Premiums$66 $4 $443 $1,911 $20 $— $2,444 $(1)$2,443 
Policy fees172 102 371 49 — — 694 — 694 
Net investment income (loss)(a)
1,224 504 327 407 19 (1)2,480 234 2,714 
Net realized gains (losses)(a)(b)
— — — — 1— 1 (321)(320)
Advisory fee and other income108 76 26 — 16 — 226 — 226 
Total adjusted revenues1,570 686 1,167 2,367 56 (1)5,845 (88)5,757 
Policyholder benefits71 6 721 2,081 (3)— 2,876 — 2,876 
Change in the fair value of market risk benefits, net— — — — — — — (262)(262)
Interest credited to policyholder account balances553 294 85 133 — — 1,065 13 1,078 
Amortization of deferred policy acquisition costs138 20 98 2 — — 258 — 258 
Non-deferrable insurance commissions94 33 21 4 1 — 153 — 153 
Advisory fee expenses36 29 (1)— — — 64 — 64 
General operating expenses104 107 167 21 85 — 484 120 604 
Interest expense— — — — 129 — 129 5 134 
Net (gain) on divestitures
— — — — — — — (59)(59)
Total benefits and expenses996 489 1,091 2,241 212 — 5,029 (183)4,846 
Noncontrolling interests— — — — 20 — 20 
Adjusted pre-tax operating income (loss)$574 $197 $76 $126 $(136)$(1)$836 
Adjustments to:
Total revenue(88)
Total expenses(183)
Noncontrolling interests(20)
Income before income tax expense (benefit)$911 $911 
(in millions)Individual RetirementGroup RetirementLife InsuranceInstitutional MarketsCorporate & OtherEliminationsTotal CorebridgeAdjustmentsTotal Consolidated
Six Months Ended June 30, 2024
Premiums$71 $5 $765 $1,963 $38 $— $2,842 $— $2,842 
Policy fees391 215 734 95 — — 1,435 — 1,435 
Net investment income(a)
2,744 982 648 976 8 (13)5,345 567 5,912 
Net realized gains (losses)(a)(b)
— — — — (17)— (17)(1,050)(1,067)
Advisory fee and other income224 166 1 2 31 — 424 — 424 
Total adjusted revenues3,430 1,368 2,148 3,036 60 (13)10,029 (483)9,546 
Policyholder benefits69 1 1,375 2,417 — — 3,862 (6)3,856 
Change in the fair value of market risk benefits, net— — — — — — — (344)(344)
Interest credited to policyholder account balances1,334 598 167 356 — — 2,455 18 2,473 
Amortization of deferred policy acquisition costs301 42 178 6 — — 527 — 527 
Non-deferrable insurance commissions184 59 35 10 1 — 289 — 289 
Advisory fee expenses73 65 1 — — — 139 — 139 
General operating expenses226 208 243 39 161 — 877 227 1,104 
Interest expense— — — — 269 (10)259 17 276 
Net (gain) on divestitures
— — — — — — — (246)(246)
Total benefits and expenses2,187 973 1,999 2,828 431 (10)8,408 (334)8,074 
Noncontrolling interests— — — — 75 — 75 
Adjusted pre-tax operating income (loss)$1,243 $395 $149 $208 $(296)$(3)$1,696 
Adjustments to:
Total revenue(483)
Total expenses(334)
Noncontrolling interests(75)
Income before income tax expense (benefit)$1,472 $1,472 
Six Months Ended June 30, 2023
Premiums$144 $10 $868 $3,486 $40 $— $4,548 $— $4,548 
Policy fees346 202 746 98 — — 1,392 — 1,392 
Net investment income(a)
2,352 1,004 644 739 87 (11)4,815 594 5,409 
Net realized gains (losses)(a)(b)
— — — — 5— 5 (1,783)(1,778)
Advisory fee and other income211 152 55 — 30 — 448 — 448 
Total adjusted revenues3,053 1,368 2,313 4,323 162 (11)11,208 (1,189)10,019 
Policyholder benefits136 15 1,429 3,799 (3)— 5,376 (5)5,371 
Change in the fair value of market risk benefits, net— — — — — — — (66)(66)
Interest credited to policyholder account balances1,072 585 167 256 — — 2,080 24 2,104 
Amortization of deferred policy acquisition costs275 41 194 4 — — 514 — 514 
Non-deferrable insurance commissions180 61 38 9 1 — 289 — 289 
Advisory fee expenses70 58 1 — — — 129 — 129 
General operating expenses212 225 326 44 176 — 983 203 1,186 
Interest expense— — — — 301 (10)291 15 306 
Net (gain) on divestitures
— — — — — — — (56)(56)
Total benefits and expenses1,945 985 2,155 4,112 475 (10)9,662 115 9,777 
Noncontrolling interests— — — — 14 — 14 
Adjusted pre-tax operating income (loss)$1,108 $383 $158 $211 $(299)$(1)$1,560 
Adjustments to:
Total revenue(1,189)
Total expenses115 
Noncontrolling interests(14)
Income before income tax expense (benefit)$242 $242 
(a)Adjustments include Fortitude Re activity of $268 million and $262 million for the three months ended June 30, 2024 and 2023, respectively, and $458 million and $(349) million for the six months ended June 30, 2024 and 2023, respectively.
(b)Net realized gains (losses) includes the gains (losses) related to the disposition of real estate investments.