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Jun 30
Corebridge Q2 2025 Earnings Report
Corebridge Financial reported a net loss in Q2 2025, but showed strong adjusted operating income and EPS, driven by strategic reinsurance transactions and growth in Individual Retirement sales.
Key Takeaways
Corebridge Financial reported a net loss of $660 million for the second quarter of 2025, primarily due to higher realized losses compared to a gain on divestiture in the prior year. However, the company achieved strong adjusted after-tax operating income of $750 million and operating EPS of $1.36, demonstrating a 10% increase in adjusted pre-tax operating income year-over-year. The company also returned $442 million to shareholders and closed a significant portion of its Individual Retirement VA transaction, positioning itself for future organic growth.
Corebridge Financial reported a net loss of $660 million, or $1.20 per share, in Q2 2025, largely due to higher realized losses.
Adjusted after-tax operating income increased to $750 million, and operating EPS rose to $1.36 per share, reflecting strong underlying business performance.
The company successfully closed the AGL portion of its Individual Retirement VA transaction, representing approximately 90% of the deal value, which is expected to reduce risk and improve earnings quality.
Corebridge returned $442 million to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value.
Corebridge
Corebridge
Corebridge Revenue by Segment
Revenue by Segment
Individual Retirement Revenue
CapyFin.comGroup Retirement Revenue
CapyFin.comLife Insurance Revenue
CapyFin.comInstitutional Markets Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
Corebridge Financial is positioned to drive organic growth from a lower-risk baseline, focusing on profitable growth, cash generation, and a strong payout ratio to create long-term shareholder value.
Positive Outlook
- Expects to drive organic growth from an even lower-risk baseline following the reinsurance transaction.
- A broad mix of attractive products and service offerings supported by an extensive distribution network.
- Individual Retirement sales exceeded last year's record second quarter.
- Cumulative sales of the new RILA product surpassed $1 billion within nine months of launch.
- Continued focus on generating ample cash and delivering a strong payout ratio to create additional long-term shareholder value.
Challenges Ahead
- The remaining portions of the variable annuity reinsurance transaction are subject to customary closing conditions and regulatory approvals, expected to close in Q4.
- Changes in interest rates and changes to credit spreads could impact future performance.
- The unpredictability of the amount and timing of insurance liability claims remains a risk.
- Potential for unavailable, uneconomical, or inadequate reinsurance or recaptures of reinsured liabilities.
- Exposure to credit risk due to non-performance or defaults by counterparties or derivative instruments.