Corebridge Financial, an American multinational financial services company, has announced its financial results for the third quarter of 2025, reporting net income of $144 million, which compares to a loss of $1.2 billion in the same period last year.
Adjusted pre-tax operating income (APTOI) in Q3 2025 saw a 29% decrease, to $654 million, from the prior year quarter.
The company completed its annual actuarial assumption update during the quarter which decreased pre-tax income by $167 million in the current year, compared to a $79 million decrease in prior year.
Excluding variable investment income (VII), APTOI decreased 28% from the same period, also reflecting the impact of the annual actuarial assumption update and favourable one-time notable items present in the prior year.
The annual actuarial assumption update decreased APTOI by $98 million in the current year quarter compared to a $3 million decrease in the same period last year, primarily reflecting modelling refinements and life assumption updates.
Additionally, Corebridge saw an increase in compensation-related expenses and a one-time medical accrual across all segments.
Core sources of income also experienced a slight dip, falling 4% to $1.5 billion. This was mainly due to changes in underwriting margin due to the favourable one-time notable items in the prior year quarter, partially offset by higher fee income.
Despite Federal Reserve interest rate cuts in 2024, spread income remained essentially flat year-over-year.
Corebridge also reported a 34% increase in Q3 2025 premiums and deposits, to $12.3 billion, over the prior year quarter.
Excluding transactional activity (i.e., pension risk transfer, guaranteed investment contracts and Group Retirement plan acquisitions), premiums and deposits increased 10% from the same period primarily driven by higher fixed index annuity and RILA deposits.
However, the Life Insurance business segment did see a minor drop in premiums and deposits, decreasing by $15 million, or 2%, primarily due to lower new business sales.
Corebridge’s holding company liquidity stood strong at $1.8 billion as of September 30, 2025.
Q3 2025’s underwriting margin excluding VII decreased 16% from the prior year quarter, largely due to a $62 million favourable reinsurance recapture in the prior year period.
In terms of operating profit, APTOI decreased $131 million, or 84%, from the prior year quarter.
Kevin Hogan, President and Chief Executive Officer, said, “Corebridge delivered another quarter of solid performance, with our diversified businesses generating $12.3 billion of sales. The VA reinsurance transaction has enhanced our position, and we are now a simpler company with a lower risk profile, higher quality of earnings, and greater growth potential.
“Since the IPO we have strengthened every element of our value proposition. We offer a broad range of retirement and protection solutions to our customers. Our businesses contribute three different sources of income which generate sustainable and growing cash flows, and help us perform through various market cycles.”
He continued: “We have a strong balance sheet that provides us with significant financial flexibility to achieve our strategic objectives. The capital ratios of our insurance companies continue to exceed their targets. We have more than ample liquidity at the parent and have returned $1.4 billion to shareholders this year. We have a high-quality investment portfolio and minimal legacy liabilities.
“Our track record of disciplined execution speaks for itself, including the divestiture of our international operations, launch of our Bermuda strategy with a total of $18.0 billion of reserves ceded, and completion of one of the largest VA reinsurance transactions to date – all while operating for the first time as an independent company, and delivering on every target we set at the time of the IPO.”
Hogan concluded: “I look forward to welcoming our next CEO knowing we have a strong foundation in place, with four market-leading businesses, a commitment to help people meet their financial needs, and a track record of value creation. Above all I remain excited about the future prospects for continued profitable growth.”
Marc Costantini will succeed Hogan as Corebridge’s Chief Executive Officer, effective December 1, 2025. Costantini, who is joining the company from Manulife, will also join Corebridge’s Board of Directors on the same date.
Hogan will transition to Special Advisor to the Board and will remain in that position for six months after the arrival of Costantini.
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