☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2025
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-41504
Corebridge Financial, Inc.
(Exact name of registrant as specified in its charter)
Delaware
95-4715639
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
2919 Allen Parkway, Woodson Tower, Houston, Texas
77019
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: 1-877-375-2422
____________________
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, Par Value $0.01 Per Share
CRBG
New York Stock Exchange
6.375% Junior Subordinated Notes
CRBD
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of August 1, 2025, there were 538,681,830shares outstanding of the registrant’s common stock.
Cautionary Statement Regarding Forward-Looking Information
This Quarterly Report on Form 10-Q (“Quarterly Report”) may include statements, which, to the extent they are not statements of historical or present fact, constitute “forward looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “targets,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this Quarterly Report and include, without limitation, statements regarding our intentions, beliefs, assumptions or current plans and expectations concerning, among other things, financial position and future financial condition; results of operations; expected operating and non-operating relationships; ability to meet debt service obligations and financing plans; product sales; distribution channels; retention of business; investment yields and spreads; investment portfolio and ability to manage asset-liability cash flows; financial goals and targets; prospects; growth strategies or expectations; laws and regulations; customer retention; the outcome (by judgment or settlement) and costs of legal, administrative or regulatory proceedings, investigations or inspections, including, without limitation, collective, representative or class action litigation; geopolitical events, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East; and the impact of prevailing capital markets and economic conditions.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition, liquidity and cash flows, and the development of the markets in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report. In addition, even if our results of operations, financial condition, liquidity and cash flows, and the development of the markets in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation:
•changes in interest rates and changes to credit spreads;
•the deterioration of economic conditions, including an increase in the likelihood of an economic slowdown or recession, changes in market conditions, trade disputes with other countries, including the effect of sanctions and trade restrictions, such as tariffs and trade barriers imposed by the U.S. government and any countermeasures by other governments in response to such tariffs, weakening in capital markets in the U.S and globally, volatility in equity markets, inflationary pressures, the rise of pressures on the commercial real estate market, and geopolitical tensions, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East;
•the unpredictability of the amount and timing of insurance liability claims;
•unavailable, uneconomical or inadequate reinsurance or recaptures of reinsured liabilities;
•uncertainty and unpredictability related to our reinsurance agreements with Fortitude Reinsurance Company Ltd. (“Fortitude Re”) and its performance of its obligations under these agreements;
•failure to complete all or any portion of the transactions with Corporate Solutions Life Reinsurance Company and Venerable Holdings, Inc.;
•our limited ability to access funds from our subsidiaries;
•our ability to incur indebtedness, our potential inability to refinance all or a portion of our indebtedness or our ability to obtain additional financing on favorable terms or at all;
•our ability to maintain sufficient eligible collateral to support business and funding strategies requiring collateralization;
•our inability to generate cash to meet our needs due to the illiquidity of some of our investments;
•the inaccuracy of the methodologies, estimations and assumptions underlying our valuation of investments and derivatives;
•a downgrade in our Insurer Financial Strength (“IFS”) ratings or credit ratings;
•exposure to credit risk due to non-performance or defaults by our counterparties or our use of derivative instruments to hedge market risks associated with our liabilities;
•our ability to adequately assess risks and estimate losses related to the pricing of our products;
•the failure of third parties that we rely upon to provide and adequately perform certain business, operations, investment advisory, functional support and administrative services on our behalf;
•the impact of risks associated with our arrangement with Blackstone ISG-I Advisors LLC (“Blackstone IM”), BlackRock Financial Management, Inc. (“BlackRock”) or any other asset manager we retain, including their historical performance not being indicative of the future results of our investment portfolio and the exclusivity of certain arrangements with Blackstone IM;
•our inability to maintain the availability of critical technology systems and the confidentiality of our data, including challenges associated with a variety of privacy and information security laws;
•the ineffectiveness of our risk management policies and procedures;
•significant legal, governmental or regulatory proceedings;
•the intense competition we face in each of our business lines and the technological changes, including the use of artificial intelligence (“AI”), that may present new and intensified challenges to our business;
•catastrophes, including those associated with climate change and pandemics;
•business or asset acquisitions and dispositions that may expose us to certain risks;
•our ability to protect our intellectual property;
•our ability to operate efficiently and compete effectively in a heavily regulated industry in light of new domestic or international laws and regulations or new interpretations of current laws and regulations;
•impact on sales of our products and taxation of our operations due to changes in U.S. federal income or other tax laws or the interpretation of tax laws;
•the ineffectiveness of our productivity improvement initiatives in yielding our expected expense reductions and improvements in operational and organizational efficiency;
•differences between actual experience and the estimates used in the preparation of financial statements and modeled results used in various areas of our business;
•our inability to attract and retain key employees and highly skilled people needed to support our business;
•our relationships with AIG, Nippon and Blackstone and conflicts of interests arising due to such relationships;
•the indemnification obligations we have to AIG;
•potentially higher U.S. federal income taxes due to our inability to file a single U.S. consolidated federal income tax return for five years following our initial public offering (“IPO”) and our separation from AIG causing an “ownership change” for U.S. federal income tax purposes caused by our separation from AIG;
•risks associated with the Tax Matters Agreement with AIG and our potential liability for U.S. income taxes of the entire AIG Consolidated Tax Group for all taxable years or portions thereof in which we (or our subsidiaries) were members of such group;
•the risk that anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders; and
•challenges related to compliance with applicable laws incident to being a public company, which is expensive and time-consuming.
Other risks, uncertainties and factors, including those discussed in “Risk Factors” in the 2024 Form 10-K could cause our actual results to differ materially from those projected in any forward-looking statements we make. You should read carefully the factors described in “Risk Factors” in the 2024 Form 10-K to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.
You should read this Quarterly Report completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this Quarterly Report are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this Quarterly Report, and we do not undertake any obligation to update or revise any forward-looking statements to reflect the occurrence of events, unanticipated or otherwise, other than as may be required by law.
Corporate Information
We encourage investors and others to frequently visit our website (www.corebridgefinancial.com), including our Investor Relations web pages (investors.corebridgefinancial.com). We announce significant financial and other information to our investors and the public on the Investor Relations web pages, as well as in U.S. Securities and Exchange Commission (“SEC”) filings, in news releases, public conference calls and webcasts, fact sheets and other documents and media. The information found on our website is not incorporated by reference into this Quarterly Report or in any other report or document we submit to the SEC, and any references to our website are intended to be inactive textual references only.
Bonds available-for-sale, at fair value, net of allowance for credit losses of $91 in 2025 and $119 in 2024 (amortized cost: 2025 - $196,213; 2024 - $191,058)*
$
179,645
$
170,840
Other bond securities, at fair value (See Note 5)*
5,379
5,262
Equity securities, at fair value (See Note 5)*
911
56
Mortgage and other loans receivable, net of allowance for credit losses of $719 in 2025 and $771 in 2024*
54,334
52,768
Other invested assets (portion measured at fair value: 2025 - $8,091; 2024 - $7,791)*
9,947
9,851
Short-term investments, including restricted cash of $4 in 2025 and $4 in 2024 (portion measured at fair value: 2025 - $1,264; 2024 - $1,439)*
3,811
4,981
Total investments
254,027
243,758
Cash*
290
806
Accrued investment income*
2,238
2,169
Premiums and other receivables, net of allowance for credit losses and disputes of $1in 2025 and $1 in 2024
674
713
Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes of $0 in 2025 and $0 in 2024
24,463
24,933
Reinsurance assets - other, net of allowance for credit losses and disputes of $10 in 2025 and $12 in 2024
1,700
1,560
Deferred income taxes
7,426
7,903
Deferred policy acquisition costs and value of business acquired
10,435
10,293
Market risk benefit assets, at fair value
1,329
1,332
Other assets, including restricted cash of$2in 2025 and $14 in 2024 (portion measured at fair value:
2025 - $590; 2024 - $193)*
2,340
1,844
Separate account assets, at fair value
94,064
93,888
Assets held-for-sale
177
198
Total assets
$
399,163
$
389,397
Liabilities:
Future policy benefits for life and accident and health insurance contracts
Condensed Consolidated Statements of Income (Loss) (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in millions, except per common share data)
2025
2024
2025
2024
Revenues:
Premiums
$
464
$
547
$
1,353
$
2,842
Policy fees
721
721
1,441
1,435
Net investment income:
Net investment income - excluding Fortitude Re funds withheld assets
2,995
2,663
5,853
5,255
Net investment income - Fortitude Re funds withheld assets
343
325
674
657
Total net investment income
3,338
2,988
6,527
5,912
Net realized losses:
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative
(1,694)
(690)
(2,516)
(868)
Net realized losses on Fortitude Re funds withheld assets
(30)
(93)
(26)
(257)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative
(251)
36
(847)
58
Total net realized losses
(1,975)
(747)
(3,389)
(1,067)
Advisory fee income
121
124
246
248
Other income
75
77
156
176
Total revenues
2,744
3,710
6,334
9,546
Benefits and expenses:
Policyholder benefits (includes remeasurement (gains) losses of $59 and $68 for the three months ended June 30, 2025 and 2024, and $205 and $168, for the six months ended June 30, 2025 and 2024, respectively)
982
1,049
2,439
3,856
Change in the fair value of market risk benefits, net
(279)
25
106
(344)
Interest credited to policyholder account balances
1,486
1,274
2,903
2,473
Amortization of deferred policy acquisition costs and value of business acquired
275
260
550
527
Non-deferrable insurance commissions
152
146
308
289
Advisory fee expenses
64
71
134
139
General operating expenses
535
532
1,079
1,104
Interest expense
137
138
285
276
Net gain on divestitures
—
(241)
—
(246)
Total benefits and expenses
3,352
3,254
7,804
8,074
Income (loss) before income tax expense (benefit)
(608)
456
(1,470)
1,472
Income tax expense (benefit)
60
115
(145)
304
Net income (loss)
(668)
341
(1,325)
1,168
Less:
Net loss attributable to noncontrolling interests
(8)
(24)
(1)
(75)
Net income (loss) attributable to Corebridge
$
(660)
$
365
$
(1,324)
$
1,243
Income (loss) per common share attributable to Corebridge common shareholders:
Common stock - basic
$
(1.20)
$
0.60
$
(2.39)
$
2.01
Common stock - diluted
$
(1.20)
$
0.59
$
(2.39)
$
2.01
Weighted average shares outstanding:
Common stock - basic
550.3
611.6
554.1
617.8
Common stock - diluted
550.3
612.6
554.1
618.7
See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 1. Overview and Basis of Presentation
1. Overview and Basis of Presentation
OVERVIEW
Corebridge Financial, Inc. (“Corebridge Parent”) is a leading provider of retirement solutions and life insurance products in the United States. Our primary business operations consist of sales of individual and group annuities products, life insurance products to individuals and institutional markets products. Corebridge Parent common stock, par value $0.01 per share, is listed on the New York Stock Exchange (NYSE: CRBG). The terms “Corebridge,” “we,” “us,” “our” or the “Company” mean Corebridge Parent and its consolidated subsidiaries, unless the context refers to Corebridge Parent only. Subsidiaries of Corebridge Parent include: AGC Life Insurance Company (“AGC”), American General Life Insurance Company (“AGL”), The Variable Annuity Life Insurance Company (“VALIC”), The United States Life Insurance Company in the City of New York (“USL”), Corebridge Insurance Company of Bermuda, Ltd. ("CRBG Bermuda") and SAFG Capital LLC and its subsidiaries.
As of June 30, 2025, Corebridge’s three largest shareholders, Nippon Life Insurance Company, a mutual company organized under the laws of Japan (“Nippon”), American International Group, Inc. (“AIG”), and Argon Holdco LLC, owned approximately 22.5%, 21.0% and 11.4% of the outstanding Corebridge Parent common stock, respectively.
BASIS OF PRESENTATION
These unaudited Condensed Consolidated Financial Statements present the results of operations, financial condition and cash flows of the Company.
These Condensed Consolidated Financial Statements include the results of Corebridge Parent, its controlled subsidiaries (generally through a greater than 50% ownership of voting rights and voting interests) and variable interest entities (“VIEs”) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over the operating and financial policies, are accounted for under the equity method unless we have elected the fair value option.
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’) and reflect all normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary in the opinion of management for a fair statement of our financial position, results of operations and cash flows for the periods presented.
USE OF ESTIMATES
The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of:
•fair value measurements of certain financial assets and liabilities;
•valuation of market risk benefits (“MRBs”) related to guaranteed benefit features of variable annuity, fixed annuity and fixed index annuity products;
•valuation of embedded derivative liabilities for fixed index annuity, registered index-linked annuity and index universal life products;
•valuation of future policy benefit liabilities and recognition of remeasurement gains and losses;
•reinsurance assets, including the allowance for credit losses;
•allowance for credit losses primarily on loans and available-for-sale fixed maturity securities; and
•income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset.
These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.
VARIABLE ANNUITY REINSURANCE TRANSACTION
On June 25, 2025, AGL and USL (the “Ceding Companies” and each, a “Ceding Company”), entered into a Master Transaction Agreement (the “Agreement”) with Corporate Solutions Life Reinsurance Company, an Iowa-domiciled insurance company (“Reinsurer”), pursuant to which, among other things, subject to the terms and conditions thereof, at the applicable closing of the transactions contemplated thereby, AGL and the Reinsurer, as well as USL and the Reinsurer, will each enter into coinsurance and modified coinsurance agreements, (together the “Reinsurance Agreements” and each, a “Reinsurance Agreement”). Under the terms of the Reinsurance Agreements, the applicable Ceding Company will cede to Reinsurer 100% of the applicable reinsured liabilities with respect to (i) in-force individual retirement variable annuity contracts issued prior to the effective time of the Reinsurance Agreements, and (ii) only with respect to AGL, new individual retirement variable annuity contracts issued after the effective date of the Reinsurance Agreement. In addition, AGL agreed to sell all of the outstanding membership interests in SunAmerica Asset Management, LLC, an indirect wholly-owned subsidiary of the Company (“SAAMCo”), to Venerable Holdings, Inc., a Delaware corporation (“Venerable”) or one of its affiliates subject to customary terms and conditions.
The closings with respect to the Reinsurance Agreement with AGL and the Reinsurance Agreement with USL are bifurcated. The closing with respect to the Reinsurance Agreement with AGL occurred on August 1, 2025 and the closings with respect to the Reinsurance Agreement with USL and the sale of SAAMCo are expected to occur in the fourth quarter of 2025. The consummation of the closings under the Agreement are subject to the satisfaction or waiver of customary closing conditions specified in the Agreement.
2. Summary of Significant Accounting Policies
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs.
FUTURE APPLICATION OF ACCOUNTING STANDARDS
Income Taxes
In December 2023, the FASB issued an ASU to address improvements to income tax disclosures. The standard requires disaggregated information about a company’s effective tax rate reconciliation as well as information on income taxes paid. The standard is effective for public companies for annual periods beginning after December 15, 2024, with early adoption permitted. We are assessing the impact of this standard.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued an ASU to improve the disclosures about a company’s business expenses. The standard requires disclosure about specific types of expenses, such as depreciation, intangible asset amortization and employee compensation, included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The standard is effective for public companies for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The standard is allowed to be applied on either a prospective or retrospective basis. We are assessing the impact of this standard.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |3. Segment Information
3. Segment Information
We report our results of operations consistent with the manner in which our Chief Executive Officer, who is the 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, registered index-linked 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 – consists of term and universal life insurance products in the United States. The International Life business issued individual and group life insurance in the United Kingdom. On April 8, 2024, Corebridge 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.
The chief operating decision maker assesses segment performance and allocates capital and resources to the segments based on an evaluation of each segments’ 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 those 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).
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |3. Segment Information
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.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |3. Segment Information
(in millions)
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate & Other
Eliminations
Total Corebridge
Adjustments
Total Consolidated
Six Months Ended June 30, 2025
Premiums
$
71
$
4
$
717
$
525
$
36
$
—
$
1,353
$
—
$
1,353
Policy fees
397
213
730
101
—
—
1,441
—
1,441
Net investment income(a)
3,071
954
671
1,243
34
(15)
5,958
569
6,527
Net realized gains (losses)(a)(b)
—
—
—
—
2
—
2
(3,391)
(3,389)
Advisory fee and other income
214
172
1
2
13
—
402
—
402
Total adjusted revenues
3,753
1,343
2,119
1,871
85
(15)
9,156
(2,822)
6,334
Policyholder benefits
80
7
1,286
1,028
11
—
2,412
27
2,439
Change in the fair value of market risk benefits, net
—
—
—
—
—
—
—
106
106
Interest credited to policyholder account balances
1,647
597
164
473
—
—
2,881
22
2,903
Amortization of deferred policy acquisition costs
330
43
169
8
—
—
550
—
550
Non-deferrable insurance commissions
208
60
29
10
1
—
308
—
308
Advisory fee expenses
70
63
1
—
—
—
134
—
134
General operating expenses(c)
241
196
229
42
145
(2)
851
228
1,079
Interest expense
—
—
—
—
284
(15)
269
16
285
Net (gain) on divestitures
—
—
—
—
—
—
—
—
—
Total benefits and expenses
2,576
966
1,878
1,561
441
(17)
7,405
399
7,804
Noncontrolling interests
—
—
—
—
1
—
1
Adjusted pre-tax operating income (loss)
$
1,177
$
377
$
241
$
310
$
(355)
$
2
$
1,752
Adjustments to:
Total revenue
(2,822)
Total expenses
399
Noncontrolling interests
(1)
Income before income tax expense (benefit)
$
(1,470)
$
(1,470)
Six Months Ended June 30, 2024
Premiums
$
71
$
5
$
765
$
1,963
$
38
$
—
$
2,842
$
—
$
2,842
Policy fees
391
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 income
224
166
1
2
31
—
424
—
424
Total adjusted revenues
3,430
1,368
2,148
3,036
60
(13)
10,029
(483)
9,546
Policyholder benefits
69
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 balances
1,334
598
167
356
—
—
2,455
18
2,473
Amortization of deferred policy acquisition costs
301
42
178
6
—
—
527
—
527
Non-deferrable insurance commissions
184
59
35
10
1
—
289
—
289
Advisory fee expenses
73
65
1
—
—
—
139
—
139
General operating expenses
226
208
243
39
161
—
877
227
1,104
Interest expense
—
—
—
—
269
(10)
259
17
276
Net (gain) on divestitures
—
—
—
—
—
—
—
(246)
(246)
Total benefits and expenses
2,187
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
(a)Adjustments include Fortitude Re activity of $62 million and $268 million for the three months ended June 30, 2025 and 2024, respectively, and $(199) million and $458 million for the six months ended June 30, 2025 and 2024, respectively.
(b)Net realized gains (losses) includes the gains (losses) related to the disposition of real estate investments.
(c)Adjustments include restructuring and other costs. The three and six months ended June 30, 2025 restructuring and other costs primarily include severance related costs and ongoing modernization initiatives.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
4. Fair Value Measurements
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS
Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:
•Level 1:Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.
•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:
June 30, 2025
Level 1
Level 2
Level 3
Counterparty
Netting(a)
Cash Collateral
Total
(in millions)
Assets:
Bonds available-for-sale:
U.S. government and government sponsored entities
$
9
$
1,269
$
—
$
—
$
—
$
1,278
Obligations of states, municipalities and political subdivisions
—
3,766
761
—
—
4,527
Non-U.S. governments
—
4,302
—
—
—
4,302
Corporate debt
—
113,367
433
—
—
113,800
RMBS
—
10,029
5,988
—
—
16,017
CMBS
—
8,777
792
—
—
9,569
CLO
—
7,262
1,987
—
—
9,249
ABS
—
1,399
19,504
—
—
20,903
Total bonds available-for-sale
9
150,171
29,465
—
—
179,645
Other bond securities:
U.S. government and government sponsored entities
—
190
—
—
—
190
Obligations of states, municipalities and political subdivisions
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
December 31, 2024
Level 1
Level 2
Level 3
Counterparty
Netting(a)
Cash Collateral
Total
(in millions)
Assets:
Bonds available-for-sale:
U.S. government and government sponsored entities
$
9
$
1,359
$
—
$
—
$
—
$
1,368
Obligations of states, municipalities and political subdivisions
—
3,916
745
—
—
4,661
Non-U.S. governments
—
3,904
—
—
—
3,904
Corporate debt
—
104,644
1,834
—
—
106,478
RMBS
—
9,739
6,045
—
—
15,784
CMBS
—
8,956
621
—
—
9,577
CLO
—
7,956
2,162
—
—
10,118
ABS
—
1,384
17,566
—
—
18,950
Total bonds available-for-sale
9
141,858
28,973
—
—
170,840
Other bond securities:
U.S. government and government sponsored entities
—
188
—
—
—
188
Obligations of states, municipalities and political subdivisions
—
33
1
—
—
34
Non-U.S. governments
—
27
—
—
—
27
Corporate debt
—
2,727
209
—
—
2,936
RMBS
—
53
98
—
—
151
CMBS
—
206
14
—
—
220
CLO
—
419
59
—
—
478
ABS
—
68
1,160
—
—
1,228
Total other bond securities
—
3,721
1,541
—
—
5,262
Equity securities
15
—
41
—
—
56
Other invested assets(b)
—
—
1,647
—
—
1,647
Derivative assets:
Interest rate contracts
—
2,556
364
—
—
2,920
Foreign exchange contracts
—
1,271
—
—
—
1,271
Equity contracts
1
2,390
654
—
—
3,045
Other contracts
—
1
13
—
—
14
Counterparty netting and cash collateral
—
—
—
(4,494)
(2,563)
(7,057)
Total derivative assets
1
6,218
1,031
(4,494)
(2,563)
193
Short-term investments
351
1,088
—
—
—
1,439
Market risk benefit assets
—
—
1,332
—
—
1,332
Separate account assets
90,400
3,488
—
—
—
93,888
Total
$
90,776
$
156,373
$
34,565
$
(4,494)
$
(2,563)
$
274,657
Liabilities:
Policyholder contract deposits(c)
$
—
$
120
$
9,415
$
—
$
—
$
9,535
Derivative liabilities:
Interest rate contracts
—
3,452
—
—
—
3,452
Foreign exchange contracts
—
268
—
—
—
268
Equity contracts
7
1,530
9
—
—
1,546
Credit contracts
—
—
—
—
—
—
Other contracts
—
—
2
—
—
2
Counterparty netting and cash collateral
—
—
—
(4,494)
(664)
(5,158)
Total derivative liabilities
7
5,250
11
(4,494)
(664)
110
Fortitude Re funds withheld payable(d)
—
—
2,223
—
—
2,223
Market risk benefit liabilities
—
—
5,616
—
—
5,616
Total
$
7
$
5,370
$
17,265
$
(4,494)
$
(664)
$
17,484
(a)Represents netting of derivative exposures covered by qualifying master netting agreements.
(b)Excludes investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent), which totaled $6.4 billion and $6.1 billion as of June 30, 2025 and December 31, 2024, respectively.
(c)Excludes basis adjustments for fair value hedges.
(d)As discussed in Note 7, the Fortitude Re funds withheld payable is created through modco and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by and continue to reside on Corebridge’s Condensed Consolidated Balance Sheets. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Corebridge, which are primarily available-for-sale securities.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS
The following tables present changes during the three and six months ended June 30, 2025 and 2024 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at June 30, 2025 and 2024:
(in millions)
Fair Value Beginning of Period
Net Realized and Unrealized Gains (Losses) Included in Income
Other Comprehensive Income (Loss)
Purchases, Sales, Issuances and Settlements, Net
Gross Transfers in
Gross Transfers out
Other
Fair Value End of Period
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
Three Months Ended June 30, 2025
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions
$
782
$
(1)
$
(17)
$
(3)
$
—
$
—
$
—
$
761
$
—
$
(22)
Corporate debt
1,084
(1)
10
(35)
4
(629)
—
433
—
5
RMBS
6,204
65
(19)
(203)
22
(81)
—
5,988
—
(9)
CMBS
704
5
4
(12)
91
—
—
792
—
2
CLO
2,159
9
3
(19)
2
(167)
—
1,987
—
3
ABS
18,768
127
90
94
436
(11)
—
19,504
—
82
Total bonds available-for-sale
29,701
204
71
(178)
555
(888)
—
29,465
—
61
Other bond securities:
Obligations of states, municipalities and political subdivisions
1
—
—
—
—
—
—
1
—
—
Corporate debt
14
1
—
(1)
(1)
—
—
13
—
—
RMBS
89
—
—
(1)
—
—
—
88
1
—
CMBS
16
—
—
—
—
—
—
16
—
—
CLO
52
(1)
—
6
—
—
—
57
(1)
—
ABS
1,148
9
—
18
—
—
—
1,175
1
—
Total other bond securities
1,320
9
—
22
(1)
—
—
1,350
1
—
Equity securities
41
—
—
—
—
—
—
41
—
—
Other invested assets
1,633
5
34
(10)
—
—
—
1,662
20
—
Total(a)
$
32,695
$
218
$
105
$
(166)
$
554
$
(888)
$
—
$
32,518
$
21
$
61
(in millions)
Fair Value Beginning of Period
Net Realized and Unrealized (Gains) Losses Included in Income
Other Comprehensive (Income) Loss
Purchases, Sales, Issuances and Settlements, Net
Gross Transfers in
Gross Transfers out
Other
Fair Value End of Period
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
Change in the fair value of market risk benefits, net and net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in theCondensed Consolidated Statements of Income (Loss) as follows:
(in millions)
Policy Fees
Net Investment Income (Loss)
Net Realized and Unrealized Gains (Losses)
Change in the Fair Value of Market Risk Benefits, net(a)
Total
Three Months Ended June 30, 2025
Assets:
Bonds available-for-sale
$
—
$
151
$
53
$
—
$
204
Other bond securities
—
9
—
—
9
Equity securities
—
—
—
—
—
Other invested assets
—
17
(12)
—
5
Three Months Ended June 30, 2024
Assets:
Bonds available-for-sale
$
—
$
200
$
(6)
$
—
$
194
Other bond securities
—
26
—
—
26
Equity securities
—
(2)
—
—
(2)
Other invested assets
—
(6)
4
—
(2)
Six Months Ended June 30, 2025
Assets:
Bonds available-for-sale
$
—
$
297
$
75
$
—
$
372
Other bond securities
—
28
—
—
28
Equity securities
—
—
—
—
—
Other invested assets
—
21
(12)
—
9
Six Months Ended June 30, 2024
Assets:
Bonds available-for-sale
$
—
$
359
$
(31)
$
—
$
328
Other bond securities
—
52
—
—
52
Equity securities
—
1
—
—
1
Other invested assets
—
(84)
2
—
(82)
Three Months Ended June 30, 2025
Liabilities:
Policyholder contract deposits(b)
$
—
$
—
$
(1,115)
$
—
$
(1,115)
Derivative liabilities, net
17
—
(115)
—
(98)
Fortitude Re funds withheld payable
—
—
(251)
—
(251)
Market risk benefit liabilities, net(c)
—
—
(1)
530
529
Three Months Ended June 30, 2024
Liabilities:
Policyholder contract deposits(b)
$
—
$
—
$
(272)
$
—
$
(272)
Derivative liabilities, net
14
—
76
—
90
Fortitude Re funds withheld payable
—
—
36
—
36
Market risk benefit liabilities, net(c)
—
—
2
129
131
Six Months Ended June 30, 2025
Liabilities:
Policyholder contract deposits(b)
$
—
$
—
$
(893)
$
—
$
(893)
Derivative liabilities, net
32
—
(275)
—
(243)
Fortitude Re funds withheld payable
—
—
(847)
—
(847)
Market risk benefit liabilities, net(c)
—
—
(3)
(45)
(48)
Six Months Ended June 30, 2024
Liabilities:
Policyholder contract deposits(b)
$
—
$
—
$
(724)
$
—
$
(724)
Derivative liabilities, net
29
—
439
(63)
405
Fortitude Re funds withheld payable
—
—
58
—
58
Market risk benefit liabilities, net(c)
—
—
4
1,198
1,202
(a)The portion of the fair value change attributable to our own credit risk is recognized in Other comprehensive income (loss) (“OCI”).
(b)Primarily embedded derivatives.
(c)Market risk benefit assets and liabilities have been netted in these tables for presentation purposes only.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three and six months ended June 30, 2025 and 2024 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:
(in millions)
Purchases
Sales
Issuances and Settlements
Purchases, Sales, Issuances and Settlements, Net
Three Months Ended June 30, 2025
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions
$
10
$
(13)
$
—
$
(3)
Corporate debt
34
(20)
(49)
(35)
RMBS
13
(17)
(199)
(203)
CMBS
5
(12)
(5)
(12)
CLO
143
—
(162)
(19)
ABS
992
(65)
(833)
94
Total bonds available-for-sale
1,197
(127)
(1,248)
(178)
Other bond securities:
Obligations of states, municipalities and political subdivisions
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
(in millions)
Purchases
Sales
Issuances and Settlements
Purchases, Sales, Issuances and Settlements, Net
Six Months Ended June 30, 2024
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions
$
—
$
—
$
(1)
$
(1)
Corporate debt
69
(8)
(131)
(70)
RMBS
1,039
(49)
(378)
612
CMBS
9
(30)
(106)
(127)
CLO
220
(2)
(140)
78
ABS
3,691
(103)
(999)
2,589
Total bonds available-for-sale
5,028
(192)
(1,755)
3,081
Other bond securities:
Corporate debt
10
—
—
10
RMBS
—
—
(6)
(6)
CMBS
—
—
—
—
CLO
9
—
(16)
(7)
ABS
257
—
(76)
181
Total other bond securities
276
—
(98)
178
Equity securities
7
(2)
—
5
Other invested assets
89
—
(131)
(42)
Total assets*
$
5,400
$
(194)
$
(1,984)
$
3,222
Liabilities:
Policyholder contract deposits
$
—
$
724
$
(354)
$
370
Derivative liabilities, net
—
—
(179)
(179)
Fortitude Re funds withheld payable
—
—
(211)
(211)
Total liabilities
$
—
$
724
$
(744)
$
(20)
*There were no issuances during the three and six months ended June 30, 2025 and 2024 for invested assets.
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at June 30, 2025 and 2024 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).
Transfers of Level 3 Assets and Liabilities
We record transfers of assets and liabilities into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. The Net realized and unrealized gains (losses) included in net income (loss) or OCI as shown in the table above excludes $(34) million and $3 million of net gains (losses) related to assets transferred into Level 3 during the three months ended June 30, 2025 and 2024, respectively, and $(30) million and $(5) million of net gains (losses) related to assets transferred into Level 3 during the six months ended June 30, 2025 and 2024, respectively, and includes $2 million and $9 million of net gains (losses) related to assets transferred out of Level 3 during the three months ended June 30, 2025 and 2024, respectively, and $16 million and $13 million of net gains (losses) related to assets transferred out of Level 3 during the six months ended June 30, 2025 and 2024, respectively.
Transfers of Level 3 Assets
During the three and six months ended June 30, 2025 and 2024, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, commercial mortgage backed securities (“CMBS”), collateralized loan obligations (“CLO”) and other asset-backed securities (“ABS”). Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in CMBS, CLO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
During the three and six months ended June 30, 2025 and 2024, transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, RMBS, CLO, ABS and certain investments in municipal securities. Transfers of certain investments in municipal securities, corporate debt, RMBS, CMBS and CLO and ABS out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.
Transfers of Level 3 Liabilities
There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three and six months ended June 30, 2025 and 2024.
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS
The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers and from internal valuation models. Because input information from third parties with respect to certain Level 3 instruments (primarily CLO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:
(in millions)
Fair Value at June 30, 2025
Valuation Technique
Unobservable Input(a)
Range
(Weighted Average)(b)
Assets:
Obligations of states, municipalities and political subdivisions
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
(a)Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.
(b)The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within policyholder contract deposits and MRBs uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(c)Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CLO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us because there are other factors relevant to the fair values of specific tranches owned by us, including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.
(d)The Fortitude Re funds withheld payable has been excluded from the above table. As discussed in Note 7, the Fortitude Re funds withheld payable is created through modco and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by and continue to reside on Corebridge’s Condensed Consolidated Balance Sheets. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Corebridge. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on Corebridge’s Condensed Consolidated Balance Sheets.
(e)The ranges for these inputs vary due to the different GMWB product specification and policyholder characteristics across in-force policies. Policyholder characteristics that affect these ranges include age, policy duration, and gender.
(f)Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table.
(g)The partial withdrawal utilization unobservable input range shown applies only to policies with GMWB riders.
(h)The NPA applied as a spread over risk-free curve for discounting.
(i)The fixed index annuities embedded derivative associated with index credits related to the contracts with guaranteed product features included in policyholder contract deposits was $2.1 billion and $1.8 billion at June 30, 2025 and December 31, 2024, respectively.
The ranges of reported inputs for obligations of states, municipalities and political subdivisions, corporate debt, RMBS, CLO/ABS and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities.
Interrelationships Between Unobservable Inputs
We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.
Fixed Maturity Securities
The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors, including constant prepayment rates, loss severity and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments.
MRBs and Embedded Derivatives within Policyholder Contract Deposits
For MRBs and embedded derivatives, the assumptions for unobservable inputs vary throughout the period over which cash flows are projected for valuation purposes. The following are applicable unobservable inputs:
•Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments. Therefore, the net change in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments.
•Equity and interest rate correlation estimates the relationship between changes in equity returns and interest rates in the economic scenario generator used to value our MRBs. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which generally increases the fair value of the liability. Only our fixed index annuities with a GMWB rider are subject to the equity and interest correlation assumption. Other policies such as accumulation fixed index annuity and life products do not use a correlation assumption.
•Base lapse rate assumptions are determined by company experience and judgment and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (when the contract holder’s guaranteed value, as estimated by the company, is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally decrease the fair value of the liability as fewer policyholders would persist to collect guaranteed benefit amounts.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
•Mortality rate assumptions, which vary by age and gender, are based on company experience and include a mortality improvement assumption. Increases in assumed mortality rates will decrease the fair value of the GMWB liability, while lower mortality rate assumptions will generally increase the fair value of the liability because guaranteed withdrawal payments will be made for a longer period of time and generally exceed any decrease in guaranteed death benefits.
•Utilization assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumptions may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization assumptions are based on company experience, which includes partial withdrawal behavior. Increases in assumed utilization rates will generally increase the fair value of the liability.
•Non-performance or “own credit” risk adjustment used in the valuation of MRBs and embedded derivatives, which reflects a market participant’s view of our claims-paying ability by incorporating a different spread (the “NPA spread”) to the curve used to discount projected benefit cash flows. When corporate credit spreads widen, the change in the NPA spread generally reduces the fair value of the MRBs and embedded derivatives, resulting in a gain in Accumulated other comprehensive income (“AOCI”) or Net realized gains (losses), respectively, and when corporate credit spreads narrow or tighten, the change in the NPA spread generally increases the fair value of the MRBs and embedded derivatives, resulting in a loss in AOCI or Net realized gains (losses), respectively.
•The projected cash flows incorporate best estimate assumptions for policyholder behavior (including mortality, lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant’s estimates of the fair value of projected cash flows and policyholder behavior. Estimates of future policyholder behavior assumptions are subjective and based primarily on our historical experience.
•For embedded derivatives, option budgets estimate the expected long-term cost of options used to hedge exposures associated with index price changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.
Embedded Derivatives within Reinsurance Contracts
The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by Corebridge related to Corebridge’s funds withheld payable. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable, and accordingly, the valuation is considered Level 3 in the fair value hierarchy.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value:
June 30, 2025
December 31, 2024
(in millions)
Investment Category Includes
Fair Value
Using NAV
Per Share (or its equivalent)
Unfunded Commitments
Fair Value
Using NAV
Per Share (or its equivalent)
Unfunded Commitments
Investment Category
Private equity funds:
Leveraged buyout
Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage
$
2,890
$
1,875
$
2,744
$
1,691
Real estate
Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities
1,275
474
1,179
551
Venture capital
Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company
192
66
199
73
Growth equity
Funds that make investments in established companies for the purpose of growing their businesses
474
136
481
91
Mezzanine
Funds that make investments in the junior debt and equity securities of leveraged companies
98
46
107
47
Other
Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies
1,320
146
1,224
195
Total private equity funds
6,249
2,743
5,934
2,648
Hedge funds:
Event-driven
Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations
5
—
5
—
Long-short
Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk
162
—
174
—
Macro
Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions
—
—
1
—
Other
Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments
13
—
30
—
Total hedge funds
180
—
210
—
Total
$
6,429
$
2,743
$
6,144
$
2,648
Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one-year or two-year increments.
All liquid hedge fund investments have been redeemed. The remaining investments, excluding those in the modco agreement with Fortitude Re, are in illiquid and/or side pocket vehicles whose liquidation horizons are uncertain and likely to extend over the coming quarters and/or years.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
FAIR VALUE OPTION
The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Assets:
Other bond securities(a)
$
101
$
91
$
240
$
175
Alternative investments(b)
182
58
231
109
Total assets
283
149
471
284
Liabilities:
Policyholder contract deposits(c)
—
2
(2)
3
Total liabilities
—
2
(2)
3
Total gain (loss)
$
283
$
151
$
469
$
287
(a)Includes certain securities supporting the funds withheld arrangements with Fortitude Re. For additional information regarding the gains and losses for Other bond securities, see Note 5. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 7.
(b)Includes certain hedge funds, private equity funds and other investment partnerships.
(c)Represents GICs.
We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of non-performance such as cash collateral posted.
FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS
The following table presents assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented:
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |4. Fair Value Measurements
FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE
The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
Estimated Fair Value
(in millions)
Level 1
Level 2
Level 3
Total
Carrying Value
June 30, 2025
Assets:
Mortgage and other loans receivable
$
—
$
27
$
51,805
$
51,832
$
54,334
Other invested assets
—
301
—
301
301
Short-term investments
—
2,547
—
2,547
2,547
Cash
290
—
—
290
290
Other assets
1
1
—
2
2
Liabilities:
Policyholder contract deposits associated with investment-type contracts
—
58
153,278
153,336
158,228
Fortitude Re funds withheld payable
—
—
20,768
20,768
20,768
Other liabilities
—
3,022
4
3,026
3,022
Short-term and long-term debt
—
9,156
—
9,156
9,456
Debt of consolidated investment entities
—
27
1,734
1,761
1,893
Separate account liabilities - investment contracts
—
89,935
—
89,935
89,935
December 31, 2024
Assets:
Mortgage and other loans receivable
$
—
$
21
$
49,560
$
49,581
$
52,768
Other invested assets
—
279
—
279
279
Short-term investments
—
3,542
—
3,542
3,542
Cash
806
—
—
806
806
Other assets
13
1
—
14
14
Liabilities:
Policyholder contract deposits associated with investment-type contracts
—
69
146,345
146,414
151,082
Fortitude Re funds withheld payable
—
—
22,068
22,068
22,068
Other liabilities
—
3,027
—
3,027
3,027
Short-term and long-term debt
—
10,083
—
10,083
10,454
Debt of consolidated investment entities
—
29
1,772
1,801
1,938
Separate account liabilities - investment contracts
Securities Available-for-Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded
The following table summarizes the fair value and gross unrealized losses on our available-for-sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit loss has been recorded:
Less Than 12 Months
12 Months or More
Total
(in millions)
Fair Value
Gross Unrealized Losses*
Fair Value
Gross Unrealized Losses*
Fair Value
Gross Unrealized Losses*
June 30, 2025
Bonds available-for-sale:
U.S. government and government sponsored entities
$
205
$
12
$
684
$
318
$
889
$
330
Obligations of states, municipalities and political subdivisions
550
60
3,287
716
3,837
776
Non-U.S. governments
859
59
2,512
711
3,371
770
Corporate debt
17,805
1,459
54,707
13,868
72,512
15,327
RMBS
2,663
169
4,384
509
7,047
678
CMBS
822
15
5,424
573
6,246
588
CLO
3,109
26
401
8
3,510
34
ABS
2,882
68
7,263
572
10,145
640
Total bonds available-for-sale
$
28,895
$
1,868
$
78,662
$
17,275
$
107,557
$
19,143
December 31, 2024
Bonds available-for-sale:
U.S. government and government sponsored entities
$
264
$
17
$
676
$
320
$
940
$
337
Obligations of states, municipalities and political subdivisions
645
46
3,504
792
4,149
838
Non-U.S. governments
922
76
2,587
780
3,509
856
Corporate debt
24,777
2,176
60,591
15,291
85,368
17,467
RMBS
3,164
101
4,964
716
8,128
817
CMBS
839
32
5,665
700
6,504
732
CLO
1,293
31
935
27
2,228
58
ABS
3,620
86
7,711
766
11,331
852
Total bonds available-for-sale
$
35,524
$
2,565
$
86,633
$
19,392
$
122,157
$
21,957
*Includes mark to market movement relating to embedded derivatives.
At June 30, 2025, we held 11,633 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including9,235individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2024, we held 14,190 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 11,054 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). We did not recognize the unrealized losses in earnings on these fixed maturity securities at June 30, 2025 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data.
Contractual Maturities of Fixed Maturity Securities Available-for-Sale
The following table presents the amortized cost and fair value of fixed maturity securities available-for-sale by contractual maturity:
Total Fixed Maturity Securities
Available-for-sale
(in millions)
Amortized Cost, Net of Allowance
Fair Value
June 30, 2025
Due in one year or less
$
3,390
$
3,390
Due after one year through five years
22,578
22,456
Due after five years through ten years
30,130
29,586
Due after ten years
83,369
68,475
Mortgage-backed, asset-backed and collateralized
56,655
55,738
Total
$
196,122
$
179,645
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.
The following table presents the gross realized gains and gross realized losses from sales or maturities of our available-for-sale securities:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(in millions)
Gross Realized Gains
Gross Realized Losses
Gross Realized Gains
Gross Realized Losses
Gross Realized Gains
Gross Realized Losses
Gross Realized Gains
Gross Realized Losses
Fixed maturity securities
$
8
$
(526)
$
12
$
(554)
$
31
$
(705)
$
15
$
(899)
For the three and six months ended June 30, 2025, the aggregate fair value of available-for-sale securities sold was $3.8 billion and $6.9 billion, respectively, which resulted in Net realized gains (losses) of $(518) million and $(674) million, respectively. Included within the Net realized gains (losses) are $(5) million and $(20) million of realized gains (losses) for the three and six months ended June 30, 2025, respectively, which relate to the Fortitude Re funds withheld assets held by Corebridge in support of Fortitude Re’s reinsurance obligations to Corebridge (Fortitude Re funds withheld assets). These realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.
For the three and six months ended June 30, 2024, the aggregate fair value of available-for-sale securities sold was $2.5 billion and $5.0 billion, respectively, which resulted in Net realized gains (losses) of $(542) million and $(884) million, respectively. Included within the Net realized gains (losses) are $(49) million and $(71) million of realized gains (losses) for the three and six months ended June 30, 2024, respectively, which relate to the Fortitude Re funds withheld assets held by Corebridge in support of Fortitude Re’s reinsurance obligations to Corebridge (Fortitude Re funds withheld assets). These realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.
OTHER SECURITIES MEASURED AT FAIR VALUE
The following table presents the fair value of fixed maturity securities measured at fair value, including securities in the modco agreement with Fortitude Re, based on our election of the fair value option and equity securities measured at fair value:
June 30, 2025
December 31, 2024
(in millions)
Fair
Value
Percent of Total
Fair
Value
Percent of Total
Fixed maturity securities:
U.S. government and government sponsored entities
$
190
3
%
$
188
4
%
Obligations of states, municipalities and political subdivisions
35
1
34
1
Non-U.S. governments
71
1
27
1
Corporate debt
2,961
47
2,936
54
Mortgage-backed, asset-backed and collateralized:
RMBS
142
2
151
3
CMBS
217
4
220
4
CLO
517
8
478
9
ABS
1,246
20
1,228
23
Total mortgage-backed, asset-backed and collateralized
The following table summarizes the carrying amounts of other invested assets:
(in millions)
June 30, 2025
December 31, 2024
Alternative investments(a)(b)
$
8,120
$
7,829
Investment real estate(c)
1,213
1,426
All other investments(d)
614
596
Total
$
9,947
$
9,851
(a)At June 30, 2025, included hedge funds of $180 million and private equity funds of $7.9 billion. At December 31, 2024, included hedge funds of $210 million and private equity funds of $7.6 billion.
(b)All liquid hedge fund investments have been redeemed. The remaining investments, excluding those in the modco agreement with Fortitude Re, are in illiquid and/or side pocket vehicles whose liquidation horizons are uncertain and likely to extend over the coming quarters and/or years.
(c)Net of accumulated depreciation of $484 million and $528 million as of June 30, 2025 and December 31, 2024, respectively.
(d)Includes Corebridge’s ownership interest in Fortitude Re Bermuda, which is recorded using the measurement alternative for equity securities. Our investment in Fortitude Re Bermuda totaled $156 million and $156 million at June 30, 2025 and December 31, 2024, respectively.
Other Invested Assets – Equity Method Investments
The carrying amount of equity method investments totaled $2.7 billion and $2.6 billion as of June 30, 2025 and December 31, 2024, respectively, representing various ownership percentages each period.
NET INVESTMENT INCOME
The following table presents the components of Net investment income:
2025
2024
(in millions)
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
Three Months Ended June 30,
Available-for-sale fixed maturity securities, including short-term investments
$
2,245
$
169
$
2,414
$
2,174
$
183
$
2,357
Other fixed maturity securities
21
80
101
13
78
91
Equity securities
30
—
30
(7)
—
(7)
Interest on mortgage and other loans
694
43
737
592
48
640
Alternative investments*
169
55
224
52
26
78
Real estate
7
2
9
10
(1)
9
Other investments
7
—
7
15
—
15
Total investment income
3,173
349
3,522
2,849
334
3,183
Investment expenses
178
6
184
186
9
195
Net investment income
$
2,995
$
343
$
3,338
$
2,663
$
325
$
2,988
Six Months Ended June 30,
Available-for-sale fixed maturity securities, including short-term investments
$
4,514
$
344
$
4,858
$
4,358
$
378
$
4,736
Other fixed maturity securities
40
200
240
26
149
175
Equity securities
28
—
28
3
—
3
Interest on mortgage and other loans
1,359
86
1,445
1,172
96
1,268
Alternative investments*
249
59
308
—
59
59
Real estate
12
—
12
22
(8)
14
Other investments
5
—
5
27
—
27
Total investment income
6,207
689
6,896
5,608
674
6,282
Investment expenses
354
15
369
353
17
370
Net investment income
$
5,853
$
674
$
6,527
$
5,255
$
657
$
5,912
*Included income from hedge funds and private equity funds. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.
The following table presents the components of Net realized gains (losses):
2025
2024
(in millions)
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
Three Months Ended June 30,
Sales of fixed maturity securities
$
(513)
$
(5)
$
(518)
$
(493)
$
(49)
$
(542)
Intent to sell(a)
(250)
—
(250)
—
—
—
Change in allowance for credit losses on fixed maturity securities
(41)
(4)
(45)
(50)
(1)
(51)
Change in allowance for credit losses on loans
14
5
19
(34)
(5)
(39)
Foreign exchange transactions, net of related hedges
(445)
(3)
(448)
55
(1)
54
Index-Linked interest credited embedded derivatives, net of related hedges
(248)
—
(248)
(172)
—
(172)
All other derivatives and hedge accounting(b)
(172)
(21)
(193)
18
(34)
(16)
Sales of alternative investments and real estate investments
(9)
(2)
(11)
11
(3)
8
Other
(30)
—
(30)
(25)
—
(25)
Net realized losses – excluding Fortitude Re funds withheld embedded derivative
(1,694)
(30)
(1,724)
(690)
(93)
(783)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative
—
(251)
(251)
—
36
36
Net realized losses
$
(1,694)
$
(281)
$
(1,975)
$
(690)
$
(57)
$
(747)
Six Months Ended June 30,
Sales of fixed maturity securities
$
(654)
$
(20)
$
(674)
$
(813)
$
(71)
$
(884)
Intent to sell(a)
(250)
—
(250)
(15)
(32)
(47)
Change in allowance for credit losses on fixed maturity securities
(61)
(12)
(73)
(112)
(7)
(119)
Change in allowance for credit losses on loans
(2)
3
1
(48)
(3)
(51)
Foreign exchange transactions, net of related hedges
(566)
10
(556)
101
—
101
Index-Linked interest credited embedded derivatives, net of related hedges
(536)
—
(536)
(82)
—
(82)
All other derivatives and hedge accounting(b)
(416)
16
(400)
123
(140)
(17)
Sales of alternative investments and real estate investments
3
(4)
(1)
31
(4)
27
Other
(34)
(19)
(53)
(53)
—
(53)
Net realized losses – excluding Fortitude Re funds withheld embedded derivative
(2,516)
(26)
(2,542)
(868)
(257)
(1,125)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative
—
(847)
(847)
—
58
58
Net realized losses
$
(2,516)
$
(873)
$
(3,389)
$
(868)
$
(199)
$
(1,067)
(a)2025 reflects impairment of fixed maturity securities that Corebridge expects to transfer or sell in conjunction with the Reinsurance Agreements discussed in Note 1.
(b)Derivative activity related to hedging certain MRBs is recorded in Change in the fair value of MRBs, net. For additional disclosures about MRBs, see Note 14.
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available-for-sale securities:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities
$
1,585
$
(1,222)
$
3,604
$
(2,309)
Other investments
—
3
—
3
Total increase (decrease) in unrealized appreciation (depreciation) of investments
The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other invested assets still held at the reporting date:
2025
2024
(in millions)
Equities
Other Invested Assets
Total
Equities
Other Invested Assets
Total
Three Months Ended June 30,
Net gains (losses) recognized during the period on equity securities and other investments
$
30
$
220
$
250
$
(7)
$
83
$
76
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period
16
(3)
13
(2)
2
—
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date
$
14
$
223
$
237
$
(5)
$
81
$
76
Six Months Ended June 30,
Net gains recognized during the period on equity securities and other investments
$
28
$
285
$
313
$
3
$
153
$
156
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period
32
(4)
28
16
4
20
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date
$
(4)
$
289
$
285
$
(13)
$
149
$
136
EVALUATINGINVESTMENTSFOR AN ALLOWANCE FOR CREDIT LOSSES AND IMPAIRMENTS
Credit Impairments
The following table presents a rollforward of the changes in allowance for credit losses on available-for-sale fixed maturity securities by major investment category:
2025
2024
(in millions)
Structured
Non-Structured
Total
Structured
Non-Structured
Total
Three Months Ended June 30,
Balance, beginning of period
$
31
$
83
$
114
$
36
$
61
$
97
Additions:
Securities for which allowance for credit losses were not previously recorded
1
42
43
1
14
15
Reductions:
Securities sold during the period
—
(9)
(9)
—
(2)
(2)
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery, amortized cost basis
(10)
12
2
24
12
36
Write-offs charged against the allowance
(4)
(55)
(59)
(24)
(28)
(52)
Other
—
—
—
1
—
1
Balance, end of period
$
18
$
73
$
91
$
38
$
57
$
95
Six Months Ended June 30,
Balance, beginning of year
$
33
$
86
$
119
$
55
$
73
$
128
Additions:
Securities for which allowance for credit losses were not previously recorded
1
82
83
14
31
45
Reductions:
Securities sold during the period
—
(11)
(11)
(15)
(11)
(26)
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery, amortized cost basis
We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as purchased credit deteriorated assets. At the time of purchase an allowance is recognized for these purchased credit deteriorated assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a purchased credit deteriorated asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs:
•current delinquency rates;
•expected default rates and the timing of such defaults;
•loss severity and the timing of any recovery; and
•expected prepayment speeds.
Subsequent to the acquisition date, the purchased credit deteriorated assets follow the same accounting as other structured securities that are not of high credit quality.
We did not purchase securities with more-than-insignificant credit deterioration since their origination during the six months ended June 30, 2025 and 2024.
PLEDGED INVESTMENTS
Secured Financing and Similar Arrangements
We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value.
Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.
The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:
(in millions)
June 30, 2025
December 31, 2024
Fixed maturity securities available-for-sale
$
2,995
$
2,921
At June 30, 2025 and December 31, 2024, amounts borrowed under repurchase and securities lending agreements totaled $3.0 billionand $3.0 billion, respectively.
The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Repurchase Agreements
The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Securities Lending Agreements
(in millions)
Overnight and Continuous
Up to 30 Days
31 - 90 Days
91 - 364 Days
365 Days or Greater
Total
June 30, 2025
Bonds available for sale:
Non-U.S. government
$
—
$
24
$
—
$
—
$
—
$
24
Corporate debt
—
2,676
—
—
—
2,676
Total
$
—
$
2,700
$
—
$
—
$
—
$
2,700
December 31, 2024
Bonds available-for-sale:
Corporate debt
$
—
$
2,234
$
—
$
—
$
—
$
2,234
Total
$
—
$
2,234
$
—
$
—
$
—
$
2,234
There were $50 million and $120 million of reverse repurchase agreements at June 30, 2025 and December 31, 2024, respectively.
We do not currently offset any secured financing transactions. All such transactions are collateralized and margined daily consistent with market standards and subject to enforceable master netting arrangements with rights of set off.
Insurance – Statutory and Other Deposits
The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance treaties, was $9.4 billion and $9.5 billion at June 30, 2025 and December 31, 2024, respectively.
Other Pledges and Restrictions
Certain of our subsidiaries are members of Federal Home Loan Banks (“FHLB”) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $301 million and $279 million of stock in FHLBs at June 30, 2025 and December 31, 2024, respectively. In addition, our subsidiaries have pledged securities available-for-sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $3.4 billion and $5.7 billion, respectively, at June 30, 2025 and $4.2 billion and $3.2 billion, respectively, at December 31, 2024.
Certain GICs recorded in policyholder contract deposits with a carrying value of $45 million and $47 million at June 30, 2025 and December 31, 2024, respectively, have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our Insurer Financial Strength (“IFS”) ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades and the aggregate amount of payments that we could be required to make depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $62 million and $62 million at June 30, 2025 and December 31, 2024, respectively. This collateral primarily consists of securities of the U.S. government and government-sponsored entities and generally cannot be repledged or resold by the counterparties.
As part of our collateralized reinsurance transactions, we pledge collateral to cedants as contractually required. The fair value of securities pledged as excess collateral with respect to these obligations was approximately $522 million and $546 million at June 30, 2025 and December 31, 2024, respectively. Additionally, assets supporting these transactions are held solely for the benefit of the cedants and insulated from obligations owed to our other policyholders and general creditors.
Reinsurance transactions between Corebridge and Fortitude Re were structured as modco with funds withheld.
The following table presents the composition of Mortgage and other loans receivable, net:
(in millions)
June 30, 2025
December 31, 2024
Commercial mortgages(a)
$
37,381
$
35,795
Residential mortgages
12,973
12,735
Life insurance policy loans
1,709
1,726
Commercial loans, other loans and notes receivable(b)
2,990
3,283
Total mortgage and other loans receivable
55,053
53,539
Allowance for credit losses(c)
(719)
(771)
Mortgage and other loans receivable, net
$
54,334
$
52,768
(a)Commercial mortgages primarily represent loans for apartments, offices and industrial properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 17% and 10%, respectively, at June 30, 2025, and 18% and 10%, respectively, at December 31, 2024). The weighted average loan-to-value ratio for NY and CA was 68% and 56% at June 30, 2025, respectively, and 65% and 56% at December 31, 2024, respectively. The debt service coverage ratio for NY and CA was 1.9X and 2.1X at June 30, 2025, respectively, and 1.9X and 2.1X at December 31, 2024, respectively.
(b)There were no loans that were held for sale which are carried at lower of cost or market as of June 30, 2025 and December 31, 2024.
(c)Does not include allowance for credit losses of $8 million and $20 million at June 30, 2025 and December 31, 2024, respectively, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.
Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest are repaid or when a portion of the delinquent contractual payments are made, and the ongoing required contractual payments have been made for an appropriate period. As of June 30, 2025, $125 million and $0.9 billion of residential mortgage loans and commercial mortgage loans, respectively, are in nonaccrual status. As of December 31, 2024, $93 million and $1.0 billion of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status.
Accrued interest is presented separately and is included in Accrued investment income on the Condensed Consolidated Balance Sheets. As of June 30, 2025, accrued interest receivable was $76 million and $163 millionassociated with residential mortgage loans and commercial mortgage loans, respectively. As of December 31, 2024, accrued interest receivable was $71 million and $154 million associated with residential mortgage loans and commercial mortgage loans, respectively.
A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan.
Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming loans were not significant for all periods presented.
CREDIT QUALITY OF COMMERCIAL MORTGAGES
The following table presents debt service coverage ratios for commercial mortgages by year of vintage*:
June 30, 2025
(in millions)
2025
2024
2023
2022
2021
Prior
Total
>1.2X
$
1,938
$
4,190
$
1,930
$
6,593
$
2,491
$
16,082
$
33,224
1.00 - 1.20X
150
184
285
889
103
1,605
3,216
<1.00X
—
—
—
26
—
915
941
Total commercial mortgages
$
2,088
$
4,374
$
2,215
$
7,508
$
2,594
$
18,602
$
37,381
December 31, 2024
(in millions)
2024
2023
2022
2021
2020
Prior
Total
>1.2X
$
3,997
$
2,275
$
6,429
$
2,589
$
1,247
$
14,763
$
31,300
1.00 - 1.20X
542
284
825
88
214
1,413
3,366
<1.00X
—
—
25
—
—
1,104
1,129
Total commercial mortgages
$
4,539
$
2,559
$
7,279
$
2,677
$
1,461
$
17,280
$
35,795
*The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X and 1.9X for the periods ended June 30, 2025 and December 31, 2024, respectively. The debt service coverage ratios are updated when additional relevant information becomes available.
The following table presents loan-to-value ratios for commercial mortgages by year of vintage*:
June 30, 2025
(in millions)
2025
2024
2023
2022
2021
Prior
Total
Less than 65%
$
1,832
$
3,945
$
1,990
$
4,575
$
1,963
$
11,796
$
26,101
65% to 75%
256
429
202
2,519
323
4,547
8,276
76% to 80%
—
—
—
20
84
313
417
Greater than 80%
—
—
23
394
224
1,946
2,587
Total commercial mortgages
$
2,088
$
4,374
$
2,215
$
7,508
$
2,594
$
18,602
$
37,381
December 31, 2024
(in millions)
2024
2023
2022
2021
2020
Prior
Total
Less than 65%
$
3,726
$
2,234
$
4,915
$
2,001
$
701
$
10,903
$
24,480
65% to 75%
813
325
2,084
323
556
3,841
7,942
76% to 80%
—
—
—
220
—
592
812
Greater than 80%
—
—
280
133
204
1,944
2,561
Total commercial mortgages
$
4,539
$
2,559
$
7,279
$
2,677
$
1,461
$
17,280
$
35,795
*The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 60% at June 30, 2025 and 60% at December 31, 2024. The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans. We update the valuations of collateral properties by obtaining independent appraisals, generally at least once per year.
The following table presents the credit quality performance indicators for commercial mortgages:
(dollars in millions)
Number of Loans
Class
Percent of Total
Apartments
Offices
Retail
Industrial
Hotel
Others
Total
June 30, 2025
Credit Quality Performance Indicator:
In good standing
586
$
14,805
$
7,825
$
4,128
$
7,357
$
1,725
$
1,003
$
36,843
99%
90 days or less delinquent
—
—
—
—
—
—
—
—
—%
>90 days delinquent or in process of foreclosure(a)
4
—
352
186
—
—
—
538
1%
Total(b)
590
$
14,805
$
8,177
$
4,314
$
7,357
$
1,725
$
1,003
$
37,381
100%
Allowance for credit losses
$
26
$
382
$
137
$
12
$
26
$
3
$
586
2
%
December 31, 2024
Credit Quality Performance Indicator:
In good standing
591
$
14,188
$
7,905
$
3,899
$
6,763
$
1,947
$
453
$
35,155
98%
90 days or less delinquent
2
—
343
—
—
—
—
343
1%
>90 days delinquent or in
process of foreclosure
2
—
111
186
—
—
—
297
1%
Total(b)
595
$
14,188
$
8,359
$
4,085
$
6,763
$
1,947
$
453
$
35,795
100%
Allowance for credit losses
$
36
$
430
$
103
$
28
$
29
$
—
$
626
2
%
(a)Includes $21 million of Retail loans and $11 million of Office loans supporting the Fortitude Re Funds Withheld arrangements, greater than 90 days delinquent or in process of foreclosure, at June 30, 2025
The following table presents credit quality performance indicators for residential mortgages by year of vintage:
June 30, 2025
(in millions)
2025
2024
2023
2022
2021
Prior
Total
FICO*:
780 and greater
$
154
$
1,032
$
630
$
646
$
2,203
$
1,438
$
6,103
720 - 779
220
1,832
1,018
564
533
560
4,727
660 - 719
121
668
322
205
143
355
1,814
600 - 659
—
—
13
28
23
155
219
Less than 600
—
—
6
23
13
68
110
Total residential mortgages
$
495
$
3,532
$
1,989
$
1,466
$
2,915
$
2,576
$
12,973
December 31, 2024
(in millions)
2024
2023
2022
2021
2020
Prior
Total
FICO*:
780 and greater
$
1,075
$
667
$
690
$
2,258
$
617
$
863
$
6,170
720 - 779
1,647
1,095
579
582
149
440
4,492
660 - 719
609
355
235
150
38
336
1,723
600 - 659
15
12
34
25
10
146
242
Less than 600
3
2
19
12
5
67
108
Total residential mortgages
$
3,349
$
2,131
$
1,557
$
3,027
$
819
$
1,852
$
12,735
*Fair Isaac Corporation (“FICO”) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months. FICO scores for residential mortgage investor loans to corporate entities are those of the guarantor at time of purchase. On June 30, 2025 and December 31, 2024 residential loans direct to consumers totaled $8.1 billion and $8.4 billion, respectively.
ALLOWANCE FOR CREDIT LOSSES
The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable*:
2025
2024
(in millions)
Commercial Mortgages
Other Loans
Total
Commercial Mortgages
Other Loans
Total
Three Months Ended June 30,
Allowance, beginning of period
$
656
$
136
$
792
$
634
$
80
$
714
Loans charged off
(54)
(1)
(55)
—
—
—
Net charge-offs
(54)
(1)
(55)
—
—
—
Addition to (release of) allowance for loan losses
(16)
(2)
(18)
20
24
44
Allowance, end of period
$
586
$
133
$
719
$
654
$
104
$
758
Six Months Ended June 30,
Allowance, beginning of period
$
626
$
145
$
771
$
614
$
84
$
698
Loans charged off
(62)
(1)
(63)
—
(6)
(6)
Net charge-offs
(62)
(1)
(63)
—
(6)
(6)
Addition to (release of) allowance for loan losses
22
(11)
11
40
26
66
Allowance, end of period
$
586
$
133
$
719
$
654
$
104
$
758
*Does not include allowance for credit losses of $8 million and $43 million at June 30, 2025 and 2024, respectively, in relation to the off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities in the Condensed Consolidated Balance Sheets.
Our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans are regularly updated to reflect the current economic environment.
LOAN MODIFICATIONS
The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. We use a probability of default/loss given default model to determine the allowance for credit losses for our commercial and residential mortgage loans. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.
Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses utilizing the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.
When modifications are executed, they often will be in the form of principal forgiveness, term extensions, interest rate reductions, or some combination of any of these concessions. When principal is forgiven, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.
We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor.
During the six months ended June 30, 2025, commercial mortgage loans with an amortized cost of $108 millionand commercial loans, other loans and notes receivable with an amortized cost of $10 million, none of which were supporting the funds withheld arrangements with Fortitude Re, were granted term extensions. The modified loans represent less than 1 percent of each of these two portfolio segments. These modifications added less than one year to the weighted average life of loans in each of these two portfolio segments.
There were no loans that defaulted during the six months ended June 30, 2025 and 2024, that had been previously modified with borrowers experiencing financial difficulties.
Corebridge closely monitors the performance of the loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. All loans with borrowers with financial difficulty that have been modified in the previous 12 months are current and performing in conjunction with its modified terms.
7. Reinsurance
In the ordinary course of business, our insurance companies may use ceded reinsurance to limit potential losses, provide additional capacity for growth, minimize exposure to significant risks or to provide greater diversification of our businesses. We may also use assumed reinsurance to diversify our business. Our reinsurance is principally under yearly renewable term (“YRT”) treaties, along with a large modco treaty reinsuring the majority of our legacy business to Fortitude Re. Reinsurance premiums ceded are recognized when due, along with corresponding benefits. Amounts recoverable from reinsurers are presented as a component of Reinsurance assets.
Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. We remain liable to the extent that our reinsurers do not meet their obligations under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for credit losses and disputes requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. Changes in the allowance for credit losses and disputes on reinsurance assets are reflected in policyholder benefits within the Consolidated Statements of Income (Loss).
Certain of our reinsurers have sought rate increases on certain YRT agreements. We have disputed, and expect to continue disputing, any requested rate increases under these agreements. Certain reinsurers may seek rate increases in the future and those may result in arbitration. To the extent reinsurers seek retroactive premium increases, our practice is to assess and accrue our current estimate of probable loss with respect to these matters.
Reinsurance recoverables are recognized in a manner consistent with the liabilities relating to the underlying reinsured contracts.
AGL and USL have modco agreements with Fortitude Re, a registered Class 4 and Class E reinsurer in Bermuda. VALIC’s modco agreement with Fortitude Re was recaptured effective January 1, 2025, resulting in a $45 million charge to pre-tax earnings.
In the modco arrangement, the investments supporting the reinsurance agreements, which consist mostly of available-for-sale securities, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., Corebridge), thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as Corebridge maintains ownership of these investments, Corebridge will maintain its existing accounting for these assets (e.g., the changes in fair value of available-for-sale securities will be recognized within OCI). Corebridge has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing liabilities for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.
There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets:
June 30, 2025
December 31, 2024
(in millions)
Carrying Value
Fair Value
Carrying Value
Fair Value
Corresponding Accounting Policy
Fixed maturity securities - available-for-sale
$
12,864
$
12,864
$
13,254
$
13,254
Fair value through other comprehensive income
Fixed maturity securities - fair value option
4,940
4,940
4,914
4,914
Fair value through net investment income
Commercial mortgage loans
3,087
2,882
3,224
2,983
Amortized cost
Real estate investments
125
184
158
227
Amortized cost
Private equity funds/hedge funds
1,820
1,820
1,893
1,893
Fair value through net investment income
Policy loans
310
310
315
315
Amortized cost
Short-term Investments
323
323
274
274
Fair value through net investment income
Funds withheld investment assets
23,469
23,323
24,032
23,860
Derivative assets, net(a)
—
—
2
2
Fair value through realized gains (losses)
Other(b)
497
497
429
429
Amortized cost
Total
$
23,966
$
23,820
$
24,463
$
24,291
(a)The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $0 million and $585 million, respectively, as of June 30, 2025. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $7 million and $182 million, respectively, as of December 31, 2024. These derivative assets and liabilities are fully collateralized either by cash or securities.
(b)Primarily comprised of Cash and Accrued investment income.
The impact of the funds withheld arrangements with Fortitude Re was as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Net investment income - Fortitude Re funds withheld assets
$
343
$
325
$
674
$
657
Net realized losses on Fortitude Re funds withheld assets:
Net realized losses Fortitude Re funds withheld assets
(30)
(93)
(26)
(257)
Net realized gains (losses) Fortitude Re funds withheld embedded derivatives
(251)
36
(847)
58
Net realized losses - Fortitude Re funds withheld assets
(281)
(57)
(873)
(199)
Income (loss) before income tax expense (benefit)
62
268
(199)
458
Income tax expense (benefit)*
13
56
(42)
96
Net income (loss)
49
212
(157)
362
Change in unrealized appreciation (depreciation) of the invested assets supporting the Fortitude Re modco arrangement classified as available-for-sale*
(18)
(216)
145
(332)
Comprehensive income (loss)
$
31
$
(4)
$
(12)
$
30
*The income tax expense (benefit) and the tax impact in OCI was computed using the U.S. statutory tax rate of 21%.
Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangement and the appreciation (depreciation) of the assets is the primary driver of the comprehensive income (loss) reflected above.
The estimation of reinsurance recoverables involves a significant amount of judgment. Reinsurance assets include reinsurance recoverables on future policy benefits and policyholder contract deposits that are estimated as part of our insurance liability valuation process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross benefit liabilities.
We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes on uncollectible reinsurance that reduces the carrying amount of reinsurance and other assets on the Condensed Consolidated Balance Sheets (collectively, the reinsurance recoverable balances). This estimate requires significant judgment for which key considerations include:
•paid and unpaid amounts recoverable;
•whether the balance is in dispute or subject to legal collection;
•the relative financial health of the reinsurer as classified by the Obligor Risk Ratings (“ORRs”) we assign to each reinsurer based upon our financial reviews; insurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and
•whether collateral and collateral arrangements exist.
An estimate of the reinsurance recoverable’s lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies.
The total reinsurance recoverables as of June 30, 2025 were $26.2 billion. As of that date, utilizing Corebridge’s ORRs, (i) approximately 95% of the reinsurance recoverables were investment grade, (ii) approximately 5% were non-investment grade reinsurance recoverables and (iii) none of the reinsurance recoverables were related to entities that were not rated by Corebridge.
Reinsurance Recoverable Allowance
The following table presents a rollforward of the reinsurance recoverable allowance:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Balance, beginning of period
$
10
$
18
$
12
$
30
Current period provision for expected credit losses and disputes
—
(6)
(2)
(8)
Write-offs charged against the allowance for credit losses and disputes
—
—
—
(10)
Balance, end of period
$
10
$
12
$
10
$
12
There were no material recoveries of credit losses previously written off for the six months ended June 30, 2025 or 2024.
Past-Due Status
We consider a reinsurance asset to be past due when it is 90 days past due and record an allowance for disputes when there is reasonable uncertainty of the collectability of a disputed amount during the reporting period. Past-due balances were not significant for any of the periods presented.
8. Variable Interest Entities
A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest but is based on other criteria discussed below.
We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.
The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE.
BALANCE SHEET CLASSIFICATION AND EXPOSURE TO LOSS
Creditors or beneficial interest holders of VIEs for which the Company is the primary beneficiary generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to the Company. The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets:
(in millions)
Real Estate and
Investment
Entities(c)
Securitization
and Repackaging
Vehicles
Total
June 30, 2025
Assets:
Bonds available-for-sale
$
39
$
—
$
39
Other bond securities
42
—
42
Equity securities
—
—
—
Mortgage and other loans receivable
—
1,800
1,800
Other invested assets
Alternative investments(a)
2,491
—
2,491
Investment real estate
717
—
717
Short-term investments
248
—
248
Cash
48
—
48
Accrued investment income
2
5
7
Other assets
56
—
56
Total assets(b)
$
3,643
$
1,805
$
5,448
Liabilities:
Debt of consolidated investment entities
$
668
$
929
$
1,597
Other liabilities
58
—
58
Total liabilities
$
726
$
929
$
1,655
December 31, 2024
Assets:
Bonds available-for-sale
$
38
$
—
$
38
Other bond securities
44
—
44
Equity securities
2
—
2
Mortgage and other loans receivable
—
1,919
1,919
Other invested assets
Alternative investments(a)
2,433
—
2,433
Investment real estate
926
—
926
Short-term investments
131
1
132
Cash
75
—
75
Accrued investment income
2
5
7
Other assets
77
—
77
Total assets(b)
$
3,728
$
1,925
$
5,653
Liabilities:
Debt of consolidated investment entities
$
658
$
977
$
1,635
Other liabilities
78
—
78
Total liabilities
$
736
$
977
$
1,713
(a)Composed primarily of investments in real estate joint ventures at June 30, 2025 and December 31, 2024.
(b)The assets of each VIE can be used only to settle specific obligations of that VIE.
(c)Off-balance-sheet exposure primarily consisting of commitments by insurance operations and affiliates into real estate and investment entities. At June 30, 2025 and December 31, 2024, the Company had commitments to internal parties of $0.9 billion and $0.7 billion and commitments to external parties of $0.3 billion and $0.4 billion, respectively.
The following table presents the revenue, net income (loss) attributable to noncontrolling interests and net income (loss) attributable to Corebridge associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Statements of Income (Loss):
Real Estate and
Securitization
Investment
and Repackaging
(in millions)
Entities
Vehicles
Total
Three Months Ended June 30, 2025
Total revenue
$
46
$
17
$
63
Net (loss) attributable to noncontrolling interests
$
(9)
$
—
$
(9)
Net income attributable to Corebridge
$
41
$
12
$
53
Three Months Ended June 30, 2024
Total revenue
$
6
$
19
$
25
Net (loss) attributable to noncontrolling interests
$
(24)
$
—
$
(24)
Net income attributable to Corebridge
$
11
$
9
$
20
Six Months Ended June 30, 2025
Total revenue
$
74
$
35
$
109
Net (loss) attributable to noncontrolling interests
$
(4)
$
—
$
(4)
Net income attributable to Corebridge
$
58
$
24
$
82
Six Months Ended June 30, 2024
Total revenue
$
(57)
$
35
$
(22)
Net (loss) attributable to noncontrolling interests
$
(75)
$
—
$
(75)
Net income (loss) attributable to Corebridge
$
(21)
$
18
$
(3)
We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation and (iii) other commitments and guarantees to the VIE.
The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs:
Maximum Exposure to Loss
(in millions)
Total VIE Assets
On-Balance
Sheet(b)
Off-Balance
Sheet (c)
Total
June 30, 2025
Real estate and investment entities(a)
$
460,532
$
6,207
$
2,814
$
9,021
Total
$
460,532
$
6,207
$
2,814
$
9,021
December 31, 2024
Real estate and investment entities(a)
$
463,464
$
5,837
$
2,800
$
8,637
Total
$
463,464
$
5,837
$
2,800
$
8,637
(a)Composed primarily of hedge funds and private equity funds.
(b)At June 30, 2025 and December 31, 2024, $6.2 billion and $5.8 billion, respectively, of our total unconsolidated VIE assets were recorded as other invested assets.
(c)These amounts represent our unfunded commitments to invest in private equity funds and hedge funds.
Additionally, Corebridge is a passive investor in certain investment vehicles that securitized certain secured loans, bank loans and residential mortgage loans. The notes held by Corebridge and their related fair values are included in the available-for-sale disclosures that are reported in Notes 4 and 5. As of June 30, 2025, the total VIE assets of these securitizations are $2.5 billion, of which Corebridge’s maximum exposure to loss including unfunded commitments is $2.3 billion. As of December 31, 2024, the total VIE assets of these securitizations are $2.6 billion, of which Corebridge’s maximum exposure to loss is $2.5 billion.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |9. Derivatives and Hedge Accounting
9. Derivatives and Hedge Accounting
We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate futures, swaps, options and bond forwards), equity derivatives (such as equity futures, swaps and options) and fixed maturity securities are used to economically mitigate interest rate risk, equity risk and credit spread exposure associated with MRBs and embedded derivatives contained in insurance contract liabilities. Interest rate derivatives are used to manage interest rate risk associated with fixed maturity securities as well as other interest rate sensitive assets and liabilities. Equity derivatives are used to economically mitigate financial risk associated with embedded derivatives and MRBs in certain insurance liabilities. In addition, equity derivatives are used to economically hedge certain investments. Foreign exchange derivatives (principally foreign exchange forwards and swaps) are used to economically mitigate risk associated with foreign denominated investments, net capital exposures and foreign currency transactions. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. As part of our strategy to enhance investment income, in addition to hedging activities, we also enter into derivative contracts with respect to investment operations, which may include, among other things, credit default swaps (“CDS”), total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.
Interest rate, currency and equity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are generally reflected in income, except in certain situations in which hedge accounting is applied and unrealized gains and losses are reflected in AOCI. Aggregate asset or liability positions are netted on the Condensed Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset.
Derivatives, with the exception of embedded derivatives, are reported at fair value in the Condensed Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Condensed Consolidated Balance Sheets. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a freestanding derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument.
For additional information on embedded derivatives and MRBs, see Notes 4, 13 and 14.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |9. Derivatives and Hedge Accounting
The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:
June 30, 2025
December 31, 2024
Gross Derivative Assets
Gross Derivative Liabilities
Gross Derivative Assets
Gross Derivative Liabilities
(in millions)
Notional Amount
Fair Value
Notional Amount
Fair Value
Notional Amount
Fair Value
Notional Amount
Fair Value
Derivatives designated as hedging instruments:(a)
Interest rate contracts
$
9,619
$
390
$
8,433
$
199
$
2,378
$
217
$
11,853
$
414
Foreign exchange contracts
2,340
232
8,151
417
7,062
558
978
46
Derivatives not designated as hedging instruments:(a)
Interest rate contracts
59,346
3,549
53,143
4,268
46,448
2,703
36,575
3,038
Foreign exchange contracts
4,989
520
9,134
457
10,360
713
2,857
222
Equity contracts
68,091
4,664
53,966
2,705
41,040
3,046
24,117
1,546
Credit contracts(b)
6,880
312
1,400
103
—
—
5
—
Other contracts(c)
46,222
14
45
1
45,016
13
45
2
Total derivatives, gross
$
197,487
$
9,681
$
134,272
$
8,150
$
152,304
$
7,250
$
76,430
$
5,268
Counterparty netting(d)
(7,022)
(7,022)
(4,494)
(4,494)
Cash collateral(e)
(2,069)
(1,000)
(2,563)
(664)
Total derivatives on Condensed Consolidated Balance Sheets(f)
$
590
$
128
$
193
$
110
(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b)Includes written credit default swaps linked to certain actively traded indices. In the case of a credit event, the maximum future payment is limited to the constituent’s representation within the index.
(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.
(d)Represents netting of derivative exposures covered by a qualifying master netting agreement.
(e)Represents cash collateral posted and received that is eligible for netting.
(f)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. The fair value of assets related to bifurcated embedded derivatives were both zero at June 30, 2025 and December 31, 2024. The fair value of liabilities related to bifurcated embedded derivatives was $13.9 billion and $11.8 billion at June 30, 2025 and December 31, 2024, respectively. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in fixed index annuities and index universal life contracts, which include equity and interest rate components; bonds available-for-sale and the funds withheld arrangement with Fortitude Re. For additional information, see Note 7.
The following table presents the gross notional amounts of our derivatives and the fair value of derivative assets and liabilities with related parties and third parties:
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |9. Derivatives and Hedge Accounting
As of June 30, 2025 and December 31, 2024, the following amounts were recorded on the Condensed Consolidated Balance Sheets related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges:
June 30, 2025
December 31, 2024
(in millions)
Carrying Amount of the Hedged Assets (Liabilities)
Cumulative Amount of Fair Value Hedging Adjustments Included In the Carrying Amount of the Hedged Assets Liabilities
Carrying Amount of the Hedged Assets (Liabilities)
Cumulative Amount of Fair Value Hedging Adjustments Included In the Carrying Amount of the Hedged Assets Liabilities
Balance sheet line item in which hedged item is recorded:
Fixed maturities, available-for-sale, at fair value
$
8,495
$
—
$
6,910
$
—
Commercial mortgage and other loans(a)
$
—
$
(21)
$
—
$
(21)
Policyholder contract deposits(b)
$
(10,476)
$
(57)
$
(8,759)
$
88
(a)This relates to hedge accounting that has been discontinued, but the respective loans are still held. The cumulative adjustment is being amortized into earnings over the remaining life of the loan.
(b)This relates to fair value hedges on GICs.
COLLATERAL
We engage in derivative transactions that are not subject to a clearing requirement directly with related parties and unaffiliated third parties, in most cases under International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements. Many of the ISDA Master Agreements also include Credit Support Annex provisions, which provide for collateral postings that may vary based on criteria such as ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an up-front or contingent basis. We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances.
Collateral posted by us to third parties for derivative transactions was $1.8 billion and $1.4 billion at June 30, 2025 and December 31, 2024, respectively. No collateral was posted by us to related parties for derivative transactions at June 30, 2025 and December 31, 2024, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $2.5 billion and $2.7 billion at June 30, 2025 and December 31, 2024, respectively. Collateral provided to us from related parties for derivative transactions was $13 million and $21 million at June 30, 2025 and December 31, 2024, respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral.
OFFSETTING
We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Condensed Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivative transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement.
HEDGE ACCOUNTING
We designated certain derivatives entered into with related parties as fair value hedges of available-for-sale securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross-currency swaps designated as hedges of the change in fair value of foreign currency denominated available-for-sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with both third parties and related parties as fair value hedges of fixed rate GICs attributable to changes in benchmark interest rates.
In 2022, we designated certain interest rate swaps entered into with related parties as cash flow hedges of forecasted coupon payments associated with anticipated long-term debt issuances. For the three and six months ended June 30, 2025, $7 million and $14 million, respectively, and for the three and six months ended June 30, 2024, $7 million and $14 million, respectively, have been reclassified into Interest expense. The remaining amount in AOCI, of $132 million, will be reclassified into Interest expense over the life of the hedging relationship, which can extend up to 30 years. We expect $28 million to be reclassified into Interest expense over the next 12 months. There are no amounts excluded from the assessment of hedge effectiveness that are recognized in earnings.
For additional information related to the debt issuances, see Note 15 to the Consolidated Financial Statements in the 2024 Form 10-K.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |9. Derivatives and Hedge Accounting
We also designated certain interest rate swaps as cash flow hedges of floating-rate investment assets. Related to such swaps, for the three and six months ended June 30, 2025, we recognized derivative gains (losses) of $64 million and $246 million, respectively, in AOCI and $(14) million and $(28) million, respectively, in net investment income. For the three and six months ended June 30, 2024,$5 million and $(13) million, respectively, in AOCI and $(4) million and $(7) million, respectively, in net investment income. As it relates to such hedges, we do not expect any reclassifications into net investment income over the next 12 months and there are no amounts excluded from the assessment of hedge effectiveness that are recognized in earnings.
We use cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. We recognized gains (losses) for the three and six months ended June 30, 2025 of $(5) million and $(9) million, respectively, and for the three and six months ended June 30, 2024 of $1 million and $3 million, respectively, included in Change in foreign currency translation adjustment in OCI related to the net investment hedge relationships. The gains (losses) recognized primarily include transactions with related parties. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges.
The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income (Loss):
Gains/(Losses) Recognized in Earnings for:
(in millions)
Hedging
Derivatives(a)(c)
Excluded
Components(b)(c)
Hedged Items
Net Impact
Three Months Ended June 30, 2025
Interest rate contracts:
Interest credited to policyholder account balances
$
56
$
—
$
(58)
$
(2)
Foreign exchange contracts:
Realized gains (losses)
$
(619)
$
(20)
$
619
$
(20)
Three Months Ended June 30, 2024
Interest rate contracts:
Interest credited to policyholder account balances
$
(10)
$
—
$
4
$
(6)
Foreign exchange contracts:
Realized gains (losses)
$
25
$
53
$
(25)
$
53
Six Months Ended June 30, 2025
Interest rate contracts:
Interest credited to policyholder account balances
$
142
$
—
$
(146)
$
(4)
Foreign exchange contracts:
Realized gains (losses)
$
(883)
$
127
$
883
$
127
Six Months Ended June 30, 2024
Interest rate contracts:
Interest credited to policyholder account balances
$
(69)
$
—
$
69
$
—
Foreign exchange contracts:
Realized gains (losses)
$
169
$
42
$
(169)
$
42
(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.
(b)Includes gains and losses with related parties for the three and six months ended June 30, 2025 and 2024.
(c)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in earnings on a mark-to-market basis.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |9. Derivatives and Hedge Accounting
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income (Loss):
Gains (Losses) Recognized in Earnings
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
By Derivative Type:
Interest rate contracts
$
(48)
$
3
$
(70)
$
(364)
Foreign exchange contracts
(397)
(60)
(616)
164
Equity contracts
352
14
(102)
203
Credit contracts
100
3
31
26
Other contracts
16
15
32
31
Embedded derivatives
(1,124)
(275)
(878)
(837)
Fortitude Re funds withheld embedded derivative
(251)
36
(847)
58
Total(a)
$
(1,352)
$
(264)
$
(2,450)
$
(719)
By Classification:
Policy fees
$
16
$
14
$
31
$
29
Net investment income (loss) - Fortitude Re funds withheld assets
(23)
6
(25)
11
Net realized gains (losses) - excluding Fortitude Re funds withheld assets(b)
(785)
(129)
(1,513)
169
Net realized losses on Fortitude Re funds withheld assets
(59)
(37)
(34)
(132)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivatives
(251)
36
(847)
58
Policyholder benefits
2
—
—
—
Change in the Fair value of market risk benefits(c)
(252)
(154)
(62)
(854)
Total(a)
$
(1,352)
$
(264)
$
(2,450)
$
(719)
(a)Includes gains (losses) with related parties of $2 million and $49 million for the three months ended June 30, 2025 and 2024, respectively, and $2 million and $36 million for the six months ended June 30, 2025 and 2024, respectively.
(b)Includes a $5 million gain related to the sale of AIG Life U.K., reported in net (gain) loss on divestitures for the six months ended June 30, 2024.
(c)This represents activity related to derivatives that economically hedged changes in fair value of certain MRBs.
In addition to embedded derivatives within policyholder contract deposits, certain guaranteed benefits within insurance contracts are classified as MRBs. The change in the fair value of these benefits is disclosed in Note 14. The change in the fair value of MRBs and the derivative instruments that hedge those risks are recognized in “Change in the fair value of MRBs, net” in the Condensed Consolidated Statements of Income (Loss).
HYBRID SECURITIES WITH EMBEDDED CREDIT DERIVATIVES
We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CLOs, ABS and collateralized debt obligations (“CDOs”), our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities.
We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income. Our investments in these hybrid securities are reported as Other bond securities in the Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were both zero at June 30, 2025 and December 31, 2024. These securities have par amounts of $25 million and $25 million at June 30, 2025 and December 31, 2024, respectively, and have remaining stated maturity dates that extend to 2052.
Deferred policy acquisition costs (“DAC”) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such DAC generally include agent or broker commissions and bonuses, and medical fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. Commissions that are not deferred to DAC are recorded in Non-deferrable insurance commissions in the Condensed Consolidated Statements of Income (Loss).
We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates.
DAC for all contracts, except for those with limited to no exposure to policyholder behavior risk, (i.e., certain investment contracts), is grouped and amortized on a constant level basis (i.e., approximating straight line amortization with adjustments for expected terminations) over the expected term of the related contracts.
The following table presents a rollforward of deferred policy acquisition costs related to long-duration contracts for the six months ended June 30, 2025 and 2024:
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Total
(in millions)
DAC:
Balance at January 1, 2025
$
5,010
$
1,049
$
4,127
$
95
$
10,281
Capitalization
453
42
183
14
692
Amortization expense
(330)
(43)
(168)
(8)
(549)
Other, including foreign exchange
—
—
—
—
—
Balance at June 30, 2025*
$
5,133
$
1,048
$
4,142
$
101
$
10,424
Balance at January 1, 2024
$
4,777
$
1,055
$
4,092
$
70
$
9,994
Capitalization
395
41
226
22
684
Amortization expense
(301)
(42)
(177)
(6)
(526)
Other, including foreign exchange
—
—
(7)
—
(7)
Dispositions
—
—
(27)
—
(27)
Balance at June 30, 2024*
$
4,871
$
1,054
$
4,107
$
86
$
10,118
* Excludes value of business acquired (“VOBA”) of $11 million and $15 million at Balance at June 30, 2025 and 2024, respectively.
DEFERRED SALES INDUCEMENTS
We offer deferred sales inducements (“DSI”) which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. To qualify for accounting treatment as an asset, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest and are higher than the contracts’ expected ongoing crediting rates for periods after the bonus period. DSI is reported in Other assets, while amortization related to DSI is recorded in Interest credited to policyholder account balances. DSI amounts are deferred and amortized on a constant level basis over the life of the contract consistent with DAC.
The following table presents a rollforward of deferred sales inducement assets related to long-duration contracts for the six months ended June 30, 2025 and 2024:
Six Months Ended June 30,
2025
2024
Individual Retirement
Group Retirement
Total
Individual Retirement
Group Retirement
Total
(in millions)
Balance, beginning of year
$
288
$
152
$
440
$
333
$
164
$
497
Capitalization
1
—
1
3
1
4
Amortization expense
(23)
(6)
(29)
(26)
(7)
(33)
Balance, end of period
$
266
$
146
$
412
$
310
$
158
$
468
Other reconciling items*
1,928
1,872
Other assets, including restricted cash
$
2,340
$
2,340
*Other reconciling items include prepaid expenses, goodwill, intangible assets and any similar items.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 11. Separate Account Assets and Liabilities
11. Separate Account Assets and Liabilities
We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and are reported as separate account assets, with an equivalent summary total reported as separate account liabilities. The assets of insulated accounts are legally segregated and are not subject to claims that arise from any of our other businesses.
Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for MRBs.
Amounts assessed against the policyholders for mortality, administrative and other services are included in policy fees. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such separate accounts are offset within the same line in the Condensed Consolidated Statements of Income (Loss).
For discussion of the fair value measurement of guaranteed benefits that are accounted for as MRBs, see Note 4.
The following table presents fair value of separate account investment options:
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 11. Separate Account Assets and Liabilities
The following table presents the balances and changes in separate account liabilities:
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Total
(in millions)
Six Months Ended June 30, 2025
Separate accounts balance, beginning of year
$
48,818
$
39,672
$
1,059
$
4,339
$
93,888
Premiums and deposits
620
687
17
72
1,396
Policy charges
(587)
(228)
(23)
(53)
(891)
Surrenders and withdrawals
(2,514)
(2,080)
(20)
(100)
(4,714)
Benefit payments
(473)
(313)
(5)
(5)
(796)
Investment performance
2,720
2,488
73
100
5,381
Net transfers from (to) general account and other
34
(245)
(3)
14
(200)
Separate accounts balance, end of period
$
48,618
$
39,981
$
1,098
$
4,367
$
94,064
Cash surrender value*
$
47,768
$
39,889
$
1,080
$
4,368
$
93,105
Six Months Ended June 30, 2024
Separate accounts balance, beginning of year
$
47,893
$
38,188
$
932
$
3,992
$
91,005
Premiums and deposits
621
712
17
82
1,432
Policy charges
(570)
(233)
(24)
(47)
(874)
Surrenders and withdrawals
(2,502)
(2,145)
(17)
(53)
(4,717)
Benefit payments
(478)
(302)
(4)
(11)
(795)
Investment performance
4,208
3,607
128
214
8,157
Net transfers from (to) general account and other
36
(148)
(1)
27
(86)
Separate accounts balance, end of period
$
49,208
$
39,679
$
1,031
$
4,204
$
94,122
Cash surrender value*
$
48,277
$
39,478
$
1,010
$
4,200
$
92,965
*The cash surrender value represents the amount of the contract holder’s account balance distributable at the balance sheet date less applicable surrender charges.
Separate account liabilities primarily represent the contract holder's account balance in separate account assets and will be equal and offsetting to total separate account assets.
12. Future Policy Benefits
Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant receives life contingent payments over their lifetime. Also included are pension risk transfer arrangements whereby an upfront premium is received in exchange for guaranteed retirement benefits. All payments under these arrangements are fixed and determinable with respect to their amounts and dates. Structured settlement or other annuitization elections (e.g., certain single premium immediate annuities) that do not involve life contingent payments, but rather payments for a stated period are included in Policyholder contract deposits.
For traditional and limited pay long-duration products, benefit reserves are accrued and benefit expense is recognized using a net premium ratio (“NPR”) methodology for each annual cohort of business.
The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate and Other
Total
(in millions, except for liability durations)
Six Months Ended June 30, 2025
Present value of expected net premiums
Balance, beginning of year
$
—
$
—
$
8,287
$
—
$
871
$
9,158
Effect of changes in discount rate assumptions (AOCI)
—
—
797
—
61
858
Beginning balance at original discount rate
—
—
9,084
—
932
10,016
Effect of actual variances from expected experience
—
—
(22)
—
4
(18)
Adjusted beginning of year balance
—
—
9,062
—
936
9,998
Issuances
—
—
328
—
—
328
Interest accrual
—
—
176
—
20
196
Net premium collected
—
—
(525)
—
(53)
(578)
Other
—
—
—
—
—
—
Ending balance at original discount rate
—
—
9,041
—
903
9,944
Effect of changes in discount rate assumptions (AOCI)
—
—
(633)
—
(45)
(678)
Balance, end of period
$
—
$
—
$
8,408
$
—
$
858
$
9,266
Present value of expected future policy benefits
Balance, beginning of year
$
1,333
$
202
$
16,947
$
19,487
$
19,040
$
57,009
Effect of changes in discount rate assumptions (AOCI)
165
3
1,720
3,206
1,536
6,630
Reclassification due to reinsurance recapture
—
102
—
259
(361)
—
Beginning balance at original discount rate
1,498
307
18,667
22,952
20,215
63,639
Effect of actual variances from expected experience(a)
(12)
2
(29)
10
(2)
(31)
Adjusted beginning of year balance
1,486
309
18,638
22,962
20,213
63,608
Issuances
65
4
323
520
3
915
Interest accrual
29
8
401
481
479
1,398
Benefit payments
(69)
(23)
(742)
(709)
(734)
(2,277)
Foreign exchange impact
—
—
—
893
—
893
Other
(1)
(2)
—
—
(3)
(6)
Ending balance at original discount rate
1,510
296
18,620
24,147
19,958
64,531
Effect of changes in discount rate assumptions (AOCI)
(140)
3
(1,425)
(3,473)
(1,232)
(6,267)
Balance, end of period
$
1,370
$
299
$
17,195
$
20,674
$
18,726
$
58,264
Net liability for future policy benefits, end of period
1,370
299
8,787
20,674
17,868
48,998
Liability for future policy benefits for certain participating contracts
—
—
12
—
1,239
1,251
Liability for universal life policies(b)
—
—
4,108
—
53
4,161
Deferred profit liability
55
22
24
1,653
780
2,534
Other reconciling items(c)
28
—
419
—
94
541
Future policy benefits for life and accident and health insurance contracts
1,453
321
13,350
22,327
20,034
57,485
Less: Reinsurance recoverable:
(5)
—
(656)
(40)
(20,034)
(20,735)
Net liability for future policy benefits after reinsurance recoverable
$
1,448
$
321
$
12,694
$
22,287
$
—
$
36,750
Weighted average liability duration of the liability for future policy benefits (years)(d)
(a)Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.
(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies.
(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.
(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.
For the six months ended June 30, 2025, and 2024 in the traditional and term life insurance block, capping of net premium ratios at 100% caused a (credit)/charge to net income of $1 million, and $1 million, respectively. The discount rate was updated based on market observable information. Relative to the prior period, the increase in upper-medium-grade fixed income yields resulted in a decrease in the liability for future policy benefits.
The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:
Six Months Ended June 30,
(in millions)
2025
2024
Individual Retirement
Undiscounted expected future benefits and expense
$
2,166
$
2,139
Undiscounted expected future gross premiums
$
—
$
—
Group Retirement
Undiscounted expected future benefits and expense
$
428
$
306
Undiscounted expected future gross premiums
$
—
$
—
Life Insurance
Undiscounted expected future benefits and expense
$
30,285
$
30,783
Undiscounted expected future gross premiums
$
20,762
$
21,815
Discounted expected future gross premiums (at current discount rate)
$
13,911
$
14,318
Institutional Markets
Undiscounted expected future benefits and expense
$
43,970
$
42,543
Undiscounted expected future gross premiums
$
—
$
—
Corporate and other *
Undiscounted expected future benefits and expense
$
40,202
$
42,304
Undiscounted expected future gross premiums
$
1,896
$
2,060
Discounted expected future gross premiums (at current discount rate)
$
1,287
$
1,356
* Represents activity ceded to Fortitude Re.
The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:
Gross Premiums
Interest Accretion
Six Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Individual Retirement
$
67
$
70
$
29
$
32
Group Retirement
4
5
8
6
Life Insurance
926
1,070
225
233
Institutional Markets
542
1,981
481
439
Corporate and Other
98
103
459
481
Total
$
1,637
$
3,229
$
1,202
$
1,191
The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate and Other
June 30, 2025
Weighted-average interest rate, original discount rate
3.84
%
5.29
%
4.70
%
4.31
%
4.88
%
Weighted-average interest rate, current discount rate
5.30
%
5.15
%
5.51
%
5.66
%
5.49
%
June 30, 2024
Weighted-average interest rate, original discount rate
3.79
%
5.13
%
4.68
%
4.27
%
4.86
%
Weighted-average interest rate, current discount rate
5.48
%
5.44
%
5.56
%
5.43
%
5.54
%
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
Additional Liabilities:For universal-life type products, insurance benefits in excess of the account balance are generally recognized as expenses in the period incurred unless the design of the product is such that future charges are insufficient to cover the benefits, in which case an “additional liability” is accrued over the life of the contract. These additional liabilities are included in Future policy benefits for life and accident and health insurance contracts in the Condensed Consolidated Balance Sheets.
Our additional liabilities include universal life policies with secondary guarantees and these additional liabilities are recognized in addition to the Policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a liability, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances are reported within Policyholder contract deposits, while these additional liabilities are reported within the liability for future policy benefits in the Condensed Consolidated Balance Sheets. These additional liabilities are also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available-for-sale on accumulated assessments, with related changes recognized through OCI. The policyholder behavior assumptions for these liabilities include mortality, lapses and premium persistency. The capital market assumptions used for the liability for universal life policies include discount rates and net earned rates.
The following table presents the balances and changes in the liability for universal life policies:
Six Months Ended June 30,
2025
2024
Life Insurance
Corporate and Other
Total
Life Insurance
Corporate and Other
Total
(in millions, except duration of liability)
Balance, beginning of year
$
4,034
$
54
$
4,088
$
3,731
$
55
$
3,786
Effect of changes in experience
217
(2)
215
192
(2)
190
Adjusted beginning balance
$
4,251
$
52
$
4,303
$
3,923
$
53
$
3,976
Assessments
327
—
327
288
1
289
Excess benefits paid
(581)
—
(581)
(413)
—
(413)
Interest accrual
79
1
80
78
1
79
Other
(1)
—
(1)
—
—
—
Changes related to unrealized appreciation (depreciation) of investments
33
—
33
40
—
40
Balance, end of period
$
4,108
$
53
$
4,161
$
3,916
$
55
$
3,971
Less: Reinsurance recoverable
(151)
(53)
(204)
(175)
(55)
(230)
Balance, end of period, net of Reinsurance recoverable
$
3,957
$
—
$
3,957
$
3,741
$
—
$
3,741
Weighted average duration of liability*
25.1
8.8
25.1
9.0
*The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates, which can be found in the table below.
The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for the liability for universal life policies:
Gross Assessments
Interest Accretion
Six Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Life Insurance
$
562
$
500
$
79
$
78
Corporate and Other
18
19
1
1
Total
$
580
$
519
$
80
$
79
The following table presents the calculation of weighted average interest rate for the liability for universal life policies:
June 30,
2025
2024
Life Insurance
Corporate and Other
Life Insurance
Corporate and Other
Weighted-average interest rate
4.03
%
4.20
%
3.92
%
4.20
%
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
The following table presents details concerning our universal life policies:
Six Months Ended June 30,
(in millions, except for attained age of contract holders)
2025
2024
Account value
$
4,089
$
3,846
Net amount at risk
$
77,186
$
74,076
Average attained age of contract holders
54
54
13. Policyholder Contract Deposits and Other Policyholder Funds
POLICYHOLDER CONTRACT DEPOSITS
The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues. They are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included as Policy fees in revenues.
In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (i) index features accounted for as embedded derivatives at fair value, (ii) annuities issued in a structured settlement arrangement with no life contingency and (iii) certain contracts we have elected to account for at fair value. Changes in the fair value of the embedded derivatives related to policy index features and the fair value of derivatives hedging these liabilities are recognized in realized gains and losses.
For additional information on index credits accounted for as embedded derivatives, see Note 4.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited)|13. Policyholder Contract Deposits and Other Policyholder Funds
The following table presents the balances and changes in Policyholder contract depositsaccount balances(a):
Individual Retirement
Group Retirement
Life Insurance
Institutional Markets
Corporate and other
Total
(in millions, except for average crediting rate)
Six Months Ended June 30, 2025
Policyholder contract deposits account balance, beginning of year
$
105,529
$
39,246
$
10,338
$
18,026
$
3,076
$
176,215
Reclassification due to reinsurance recapture
—
—
—
14
(14)
—
Deposits
11,592
2,383
810
2,560
19
17,364
Policy charges
(405)
(245)
(752)
(34)
(28)
(1,464)
Surrenders and withdrawals
(7,648)
(4,247)
(155)
(87)
(35)
(12,172)
Benefit payments
(1,966)
(984)
(132)
(591)
(135)
(3,808)
Net transfers from (to) separate account
2,610
2,090
17
58
—
4,775
Interest credited
2,085
616
233
446
71
3,451
Other, including foreign exchange
(4)
—
6
11
—
13
Policyholder contract deposits account balance, end of period
111,793
38,859
10,365
20,403
2,954
184,374
Other reconciling items(b)
(2,107)
(298)
80
139
(1)
(2,187)
Policyholder contract deposits
$
109,686
$
38,561
$
10,445
$
20,542
$
2,953
$
182,187
Weighted average crediting rate
3.33
%
3.19
%
4.49
%
4.75
%
4.86
%
Cash surrender value(c)
$
104,718
$
38,013
$
9,182
$
2,603
$
1,549
$
156,065
Six Months Ended June 30, 2024
Policyholder contract deposits account balance, beginning of year
$
94,896
$
41,299
$
10,231
$
13,649
$
3,333
$
163,408
Deposits
11,696
2,637
816
2,682
21
17,852
Policy charges
(360)
(250)
(753)
(34)
(29)
(1,426)
Surrenders and withdrawals
(8,902)
(4,859)
(148)
(53)
(39)
(14,001)
Benefit payments
(1,422)
(993)
(153)
(1,028)
(143)
(3,739)
Net transfers from (to) separate account
2,570
2,026
9
—
—
4,605
Interest credited
1,670
611
243
320
80
2,924
Other, including foreign exchange
1
(207)
17
201
(1)
11
Policyholder contract deposits account balance, end of period
100,149
40,264
10,262
15,737
3,222
169,634
Other reconciling items(b)
(1,286)
(212)
161
27
—
(1,310)
Policyholder contract deposits
$
98,863
$
40,052
$
10,423
$
15,764
$
3,222
$
168,324
Weighted average crediting rate
2.84
%
3.08
%
4.43
%
4.45
%
4.98
%
Cash surrender value(c)
$
93,131
$
39,262
$
9,068
$
2,596
$
1,666
$
145,723
(a)Transactions between the general account and the separate account are presented in this table on a gross basis (e.g., a policyholder's funds are initially deposited into the general account and then simultaneously transferred to the separate account), and thus, did not impact the ending balance of policyholder contract deposits.
(b)Reconciling items principally relate to MRBs that are bifurcated and reported separately, and changes in the fair value of embedded derivatives of $893 million, and $724 million that are recorded in policyholder contract deposits as of June 30, 2025, and 2024, respectively.
(c)Cash surrender value is related to the portion of policyholder contract deposits that have a defined cash surrender value (e.g. GICs do not have a cash surrender value).
For information related to net amount at risk, refer to the table that presents the balances of and changes in MRBs in Note 14.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited)|13. Policyholder Contract Deposits and Other Policyholder Funds
The following table presents Policyholder contract deposits account balance by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited)|13. Policyholder Contract Deposits and Other Policyholder Funds
June 30, 2024
At Guaranteed Minimum
1 Basis Point - 50 Basis Points Above
More than 50 Basis Points Above Minimum Guarantee
Total
(in millions, except percentage of total)
Individual Retirement
Range of Guaranteed Minimum Credited Rate
<=1%
$
6,010
$
1,794
$
31,449
$
39,253
> 1% - 2%
3,380
21
1,262
4,663
> 2% - 3%
7,367
12
1,898
9,277
> 3% - 4%
6,114
34
5
6,153
> 4% - 5%
418
—
4
422
> 5%
32
2
3
37
Total
$
23,321
$
1,863
$
34,621
$
59,805
Group Retirement
Range of Guaranteed Minimum Credited Rate
<=1%
$
2,103
$
1,841
$
8,062
$
12,006
> 1% - 2%
3,449
781
933
5,163
> 2% - 3%
11,277
272
113
11,662
> 3% - 4%
588
—
—
588
> 4% - 5%
6,503
—
—
6,503
> 5%
140
—
—
140
Total
$
24,060
$
2,894
$
9,108
$
36,062
Life Insurance
Range of Guaranteed Minimum Credited Rate
<=1%
$
—
$
—
$
—
$
—
> 1% - 2%
—
109
367
476
> 2% - 3%
9
623
1,299
1,931
> 3% - 4%
1,179
479
7
1,665
> 4% - 5%
2,785
—
—
2,785
> 5%
212
—
—
212
Total
$
4,185
$
1,211
$
1,673
$
7,069
Total*
$
51,566
$
5,968
$
45,402
$
102,936
Percentage of total
50%
6%
44%
100%
*Excludes policyholder contract deposits account balances that are not subject to guaranteed minimum crediting rates.
OTHER POLICYHOLDER FUNDS
Other policyholder funds include unearned revenue reserve (“URR”), consisting of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. Amortization of URR is recorded in Policy fees.
URR for investment-oriented contracts are generally deferred and amortized into income using the same assumptions and factors used to amortize DAC (i.e., on a constant level basis).
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited)|13. Policyholder Contract Deposits and Other Policyholder Funds
The following table presents a rollforward of the unearned revenue reserve for the six months ended June 30, 2025 and 2024:
Life Insurance
Institutional Markets
Corporate and Other
Total
(in millions)
Six Months Ended June 30, 2025
Balance, beginning of year
$
1,821
$
1
$
84
$
1,906
Revenue deferred
82
1
—
83
Amortization
(56)
—
(4)
(60)
Balance, end of period
$
1,847
$
2
$
80
$
1,929
Other reconciling items*
974
Other policyholder funds
$
2,903
Six Months Ended June 30, 2024
Balance, beginning of year
$
1,770
$
1
$
94
$
1,865
Revenue deferred
80
—
—
80
Amortization
(56)
—
(5)
(61)
Balance, end of period
$
1,794
$
1
$
89
$
1,884
Other reconciling items*
969
Other policyholder funds
$
2,853
*Other reconciling items include policyholders' dividend accumulations, provisions for future dividends to participating policyholders, dividends to policyholders and any similar items.
14. Market Risk Benefits
MRBs are defined as contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk and expose Corebridge to other-than nominal capital market risk. The MRB represents an amount that a policyholder receives in addition to the account balance upon the occurrence of a specific event or circumstance, such as death, annuitization, or periodic withdrawal that involves protection from other-than-nominal capital market risk. Certain contract features, such as GMWBs, GMDBs and guaranteed minimum income benefits (“GMIBs”) commonly found in variable annuities, fixed index annuities and fixed annuities, are MRBs. MRBs are assessed at contract inception using a non-option method involving attributed fees that results in an initial fair value of zero or an option method that results in a fair value greater than zero.
MRBs are recorded at fair value, and Corebridge applies a non-option attributed fee valuation method for variable annuity products, and an option-based valuation method (host offset) for fixed index and fixed products.
Changes in the fair value of Market Risk Benefits, netrepresents changes in the fair value of market risk benefit liabilities and assets (with the exception of our own credit risk changes), and includes attributed rider fees and benefits, net of changes in the fair value of derivative instruments and fixed maturity securities that are used to economically hedge market risk from the variable annuity GMWB riders.
The following is a reconciliation of MRBs by amounts in an asset position and in a liability position to the MRBs amount in the Condensed Consolidated Balance Sheets:
June 30, 2025
June 30, 2024
(in millions)
Asset*
Liability*
Net
Asset*
Liability*
Net
Individual Retirement
$
1,112
$
5,738
$
4,626
$
984
$
4,678
$
3,694
Group Retirement
217
527
310
203
446
243
Total
$
1,329
$
6,265
$
4,936
$
1,187
$
5,124
$
3,937
*Cash flows and attributed fees for MRBs are determined on a policy level basis and are reported based on their asset or liability position at the balance sheet date.
For additional information related to fair value measurements of MRBs, see Note 4.
15. Debt
SENIOR UNSECURED NOTES
On April 4, 2025, $1.0 billion aggregate principal amount of Corebridge Parent’s 3.50% Senior Notes matured. Corebridge Parent repaid the aggregate principal and accrued interest at maturity.
REVOLVING CREDIT AGREEMENT
On May 12, 2022, Corebridge Parent entered into the Revolving Credit Agreement (the “2022 Revolving Credit Agreement”). At December 31, 2024 there were no loans outstanding under the 2022 Revolving Credit Agreement. On March 26, 2025 the 2022 Revolving Credit Agreement was terminated without penalty.
On March 26, 2025, Corebridge Parent entered into the Revolving Credit Agreement (the “2025 Revolving Credit Agreement”). The 2025 Revolving Credit Agreement replaces the 2022 Revolving Credit Agreement scheduled to mature in 2027. The 2025 Revolving Credit Agreement provides for a five year total commitment of $3.0 billion revolving credit facility. Under circumstances described in the 2025 Revolving Credit Agreement, the aggregate commitments may be increased by up to $500 million, for a total commitment under the 2025 Revolving Credit Agreement of $3.5 billion. Loans under the 2025 Revolving Credit Agreement will mature on March 26, 2030. Under the 2025 Revolving Credit Agreement, the applicable rate, commitment fee and letter of credit fee were determined by reference to the credit ratings of Corebridge Parent’s senior, unsecured, long-term indebtedness. Borrowings bear interest at a rate per annum equal to (i) with respect to loans in US Dollars, an alternative base rate plus an applicable margin or the adjusted Term SOFR Rate plus an applicable margin, (ii) with respect to loans in Euros, the adjusted European Union Interbank Offer Rate (“EURIBOR”) plus an applicable margin, (iii) with respect to loans in Pounds Sterling, the adjusted Daily Simple Sterling Overnight Index Average (“SONIA”) Rate plus an applicable margin and (iv) with respect to loans in Japanese Yen, the adjusted Tokyo Interbank Offered Rate (“TIBOR”) plus an applicable margin.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |16. Contingencies, Commitments and Guarantees
16. Contingencies, Commitments and Guarantees
In the normal course of business, we enter into various contingent liabilities and commitments. Although we cannot currently quantify our ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on our consolidated financial condition, consolidated results of operations or consolidated cash flows for an individual reporting period.
LEGAL CONTINGENCIES
Overview
In the normal course of business, we are subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our future policy benefits. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, we and our respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of our securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith, indemnification and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred, and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that we have recorded in our financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not believe, other than as may be discussed below, that any such charges are likely to have a material adverse effect on our financial position or results of operations.
Additionally, from time to time, various regulatory and governmental agencies review our transactions and practices in connection with industry-wide and other inquiries or examinations into, among other matters, the business practices of current and former operating subsidiaries. Such investigations, inquiries or examinations could develop into administrative, civil or criminal proceedings or enforcement actions, in which remedies could include fines, penalties, restitution or alterations in our business practices, and could result in additional expenses, limitations on certain business activities and reputational damage.
Moriarty Litigation
AGL continues to defend against Moriarty v. American General Life Insurance Co. (S.D. Cal.), a putative class action involving Sections 10113.71 and 10113.72 of the California Insurance Code, which was instituted against AGL on July 18, 2017. In general, those statutes require that for life-insurance policies issued and delivered in California: (1) the policy must contain a 60-day grace period following non-payment of premium during which the policy remains in force; (2) the insurer must provide a 30-day pre-lapse notice; and (3) the insurer must notify policy owners of the right to designate a secondary recipient for lapse notices. The plaintiff contends AGL did not comply with these requirements for a policy issued before these statutes went into effect. The plaintiff seeks damages and other relief. AGL asserts various defenses to the plaintiff’s claims and to class certification. In 2022, the District Court held that a trial was necessary to determine whether AGL was liable on the plaintiff’s breach of contract claim, and it denied class certification. In May 2023, the case was reassigned to a new judge. On August 14, 2023, the District Court granted the plaintiff’s motion for summary judgment on the plaintiff’s breach of contract claim. On September 26, 2023, the District Court decided that good cause exists to allow the plaintiff to file a third motion for class certification. At the same time, however, the District Court certified its August 14, 2023 order for interlocutory appeal to the Ninth Circuit and stayed trial court proceedings pending the outcome of AGL’s appeal. The Ninth Circuit granted AGL’s petition for interlocutory appeal on November 21, 2023. AGL filed its opening brief on April 15, 2024. Plaintiff filed its answering brief on July 22, 2024, and AGL filed its reply on September 11, 2024. On August 13, 2024, Plaintiff filed a motion with the Ninth Circuit to certify a question regarding the interpretation of the California statute – namely, whether an insured can terminate an insurance policy without having complied with the notice and grace period requirements of the California statute. AGL opposed Plaintiff’s motion on August 23, 2024, arguing that there was no basis for certification and disagreeing with Plaintiff’s claimed issue for review.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |16. Contingencies, Commitments and Guarantees
While the Moriarty appeal was pending, the Ninth Circuit issued a published decision in Small v. Allianz Life Insurance Co. of North America, a related case presenting a substantially identical issue. The Ninth Circuit’s decision in Small squarely rejected the theory that the plaintiffs had advanced in that case and in Moriarty and embraced the argument, made by insurers, that any policyholder or beneficiary suing based on supposed breaches of Sections 10113.71 and 10113.72 must prove that the breaches actually caused them harm, for instance by resulting in missed payments or the lapse of the policy. On January 6, 2025, the parties in Moriarty, at the Ninth Circuit’s request, submitted simultaneous supplemental briefing on Small’s effect on the litigation, with AGL taking the position that Small fully disposes of the appeal in its favor and requires vacatur of the summary-judgment order in Plaintiff’s favor. The plaintiff in Small filed a petition for panel rehearing and rehearing en banc on January 23, 2025. The Ninth Circuit denied the Small petition for rehearing on February 19, 2025, and the mandate in that case was issued on February 27, 2025. On March 4, 2025 the panel in Moriarty issued a memorandum disposition without hearing oral argument, vacating the District Court’s summary-judgment order and remanding for further proceedings. The panel’s short opinion principally relies on the Ninth Circuit’s decision in Small. The panel also denied Plaintiff’s request to certify a question to the California Supreme Court. On April 8, 2025, Plaintiff filed a petition for panel rehearing or rehearing en banc. Like the plaintiff in Small, Plaintiff asked the full Ninth Circuit to grant rehearing in order to reconsider Small, or, alternatively, to certify a question to the California Supreme Court. The Ninth Circuit denied the Moriarty petition for rehearing on May 2, 2025, and the mandate was issued on May 12, 2025. On May 23, 2025, Plaintiff filed a Petition for Writ of Certiorari in the U.S. Supreme Court, challenging the Ninth Circuit’s decision. AGL filed a waiver of its response. On June 30, 2025, the U.S. Supreme Court denied Plaintiff’s Petition for Writ of Certiorari. The case is now back in the District Court, which held a status conference on July 17, 2025, to discuss next stages of the case. The District Court allowed Plaintiff to move for a stay pending litigation in state court, and that anticipated motion is set for a hearing on August 7, 2025. The District Court has previously indicated that, if the Ninth Circuit reversed the District Court’s summary judgment order in favor of Plaintiff, the case would then proceed to trial on Plaintiff’s individual breach of contract claim.
In addition, in Pitt v. Metropolitan Tower Life Insurance Co., a case presenting a distinct question about whether the statutes apply to life insurance policies initially issued and delivered in a state other than California, the Ninth Circuit has certified that extraterritoriality question to the California Supreme Court. The Plaintiff in Moriarty filed an amicus letter in Pitt urging the California Supreme Court to accept review of that extraterritoriality question, as well as the distinct causation question at issue in Moriarty. The insurer in Pitt prepared a reply letter urging rejection of that proposal, which was filed on March 24, 2025. On April 16, 2025, the California Supreme Court agreed to resolve the extraterritoriality question, but it has not agreed to address the causation question. On July 11, 2025, the parties in Pitt announced that they had reached an individual settlement and asked the California Supreme Court to vacate the pending deadlines while the parties prepared a stipulation of dismissal.
AGL is also defending other actions in California involving similar issues. Gevorgyan v. American General Life Insurance Co. (C.D. Cal.) was filed in state court on January 17, 2025, and removed to federal court on March 27, 2025. Delgado v.American General Life Insurance Co. (C.D. Cal.) was filed in federal court on March 7, 2025. Rocklage v. American General Life Insurance Co. (N.D. Cal.) was filed in state court on April 21, 2025, and removed to federal court on May 30, 2025. People of the State of California v. American General Life Insurance Co., et al. (Cal. Superior Court, San Diego County) was filed on October 17, 2024, against AGL, Lincoln Benefit Life Co., Everlake Life Insurance Co., and Transamerica Life Insurance Co., seeking civil penalties and equitable relief under California Business & Professions Code §§ 17200 et seq. On January 27, 2025, AGL filed a demurrer to the complaint. That demurrer was heard on July 10, 2025, at which time the trial court took the motion under submission. Wong v. American General Life Insurance Co. (C.D. Cal.), which was filed in state court on July 31, 2024, and removed to federal court on September 4, 2024, was confidentially settled on May 29, 2025, and dismissed with prejudice.
These cases are in the early stages, and AGL expects their progress will be influenced by future developments in Moriarty and cases against other insurers involving the same insurance statutes. AGL has accrued its current estimate of probable loss with respect to these litigation matters.
OTHER COMMITMENTS
In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the United States and abroad. These commitments totaled $4.7 billion at June 30, 2025.
GUARANTEES
Asset Dispositions
We are subject to guarantees and indemnity arrangements in connection with the completed sales of businesses. The various arrangements may be triggered by, among other things, declines in asset values; the occurrence of specified business contingencies; the realization of contingent liabilities; developments in litigation; or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitations. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |16. Contingencies, Commitments and Guarantees
We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Condensed Consolidated Balance Sheets.
Guarantees provided by AIG
Prior to the IPO, AIG provided certain guarantees to us as described below. Pursuant to the Separation Agreement we will indemnify, defend and hold harmless AIG against or from any liability arising from or related to these guarantees.
Certain of our insurance subsidiaries benefit from General Guarantee Agreements under which American Home Assurance Company (“AHAC”) or National Union Fire Insurance Company of Pittsburgh, PA (“NUFIC”) has unconditionally and irrevocably guaranteed all present and future obligations arising from certain insurance policies issued by these subsidiaries (a “Guaranteed Policy” or the “Guaranteed Policies”). AHAC and NUFIC are required to perform under the agreements if one of the insurance subsidiaries fails to make payments due under a Guaranteed Policy. These General Guarantee Agreements have all been terminated as to insurance policies issued after the date of termination. AHAC and NUFIC have not been required to perform under any of the agreements but remain contingently liable for all policyholder obligations associated with the Guaranteed Policies. We did not pay any fees under these agreements for the six months ended June 30, 2025 or 2024.
AIG provides a full and unconditional guarantee of all outstanding notes and junior subordinated debentures of Corebridge Life Holdings, Inc. (“CRBGLH”). This includes:
•a guarantee (the “CRBGLH External Debt Guarantee”) in connection with CRBGLH junior subordinated debentures and certain CRBGLH notes (the “CRBGLH External Debt”).
In addition to the Separation Agreement, we have entered into a guarantee reimbursement agreement with AIG which provides that we will reimburse AIG for the full amount of any payment made by or on behalf of AIG pursuant to the CRBGLH External Debt Guarantee. We have also entered into a collateral agreement with AIG which provides that in the event of: (i) a ratings downgrade of Corebridge Parent or CRBGLH long-term unsecured indebtedness below specified levels or (ii) the failure by CRBGLH to pay principal and interest on the External Debt when due, we must collateralize an amount equal to the sum of: (a) 100% of the principal amount outstanding, (b) accrued and unpaid interest and (c) 100% of the net present value of scheduled interest payments through the maturity dates of the CRBGLH External Debt.
•For additional discussion on commitments and guarantees associated with VIEs, see Note 8.
•For additional disclosures about derivatives, see Note 9.
•For additional disclosures about related parties, see Note 20.
The following table presents a rollforward of outstanding shares:
Six Months Ended June 30, 2025
Common Stock Issued
Treasury Stock
Common Stock Outstanding
Shares, beginning of year
650,189,849
(88,704,816)
561,485,033
Shares issued under long-term incentive compensation plans
—
1,585,239
1,585,239
Shares repurchased
—
(19,883,242)
(19,883,242)
Shares, end of period
650,189,849
(107,002,819)
543,187,030
Repurchase of Corebridge Common Stock
Shares may be repurchased from time to time in the open market, through private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. Certain of our share repurchases have been and may from time to time be effected through the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) Rule 10b5-1 repurchase plans. On May 4, 2023, our Board of Directors authorized a share repurchase program, which has subsequently been expanded. Most recently, on June 23, 2025, our Board of Directors authorized an additional $2.0 billion increase in the share repurchase amount under the share repurchase program. Under this program, Corebridge Parent may, from time to time, purchase shares of Corebridge Parent common stock but is not obligated to purchase any particular number of shares. The authorization for the share repurchase program may be terminated, increased or decreased by the Board of Directors at any time.
The following table presents by announcement date, common stock repurchases authorized by Corebridge’s Board of Directors:
June 30, 2025
Announcement date
Authorized amount
Authorization Remaining*
(in millions)
June 23, 2025
$
2,000
$
2,000
February 11, 2025
$
2,000
$
2,000
April 30, 2024
$
2,000
$
78
May 4, 2023
$
1,000
$
—
* The authorization remaining at June 30, 2025 does not reflect the applicable excise tax payable due to the Inflation Reduction Act of 2022.
From July 1, 2025 to August 1, 2025, we repurchased approximately 4.5 million shares of Corebridge Parent common stock for an aggregate purchase price of approximately $159 million, leaving approximately $3.9 billion under the share repurchase authorizations as of August 1, 2025.
RETAINED EARNINGS
Dividends
Declaration Date
Record Date
Payment Date
Dividend Paid Per Common Share
May 5, 2025
June 16, 2025
June 30, 2025
$
0.24
February 12, 2025
March 17, 2025
March 31, 2025
$
0.24
Dividends Declared
On August 4, 2025, the Company declared a cash dividend on Corebridge Parent common stock of $0.24 per share, payable on September 30, 2025 to shareholders of record at close of business on September 16, 2025.
The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in theCondensed Consolidated Statements of Income (Loss)*:
Amount Reclassified from AOCI
Affected Line Item in the Condensed Consolidated Statements of Income (Loss)
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments
$
—
$
(2)
$
(1)
$
(8)
Net realized gains (losses)
Total
$
—
$
(2)
$
(1)
$
(8)
Unrealized appreciation (depreciation) of all other investments
Investments
$
(768)
$
(540)
$
(923)
$
(876)
Net realized gains (losses)
Sale of business
—
(61)
—
(61)
Net (gain) loss on divestitures
Total
$
(768)
$
(601)
$
(923)
$
(937)
Effect of changes in the discount rates used to measure traditional and limited-payment long duration insurance contracts
Sale of business
$
—
$
246
$
—
$
246
Net (gain) loss on divestitures
Reinsurance recapture
—
—
33
—
Policyholder benefits
Total
$
—
$
246
$
33
$
246
Foreign Currency Translation Adjustments
Sale of business
$
—
$
(67)
$
—
$
(67)
Net (gain) loss on divestitures
Total
$
—
$
(67)
$
—
$
(67)
Total reclassifications for the period
$
(768)
$
(424)
$
(891)
$
(766)
*The following items are not reclassified out of AOCI and included in the Condensed Consolidated Statements of Income (Loss) and thus have been excluded from the table:(a) Change in fair value of MRBs attributable to changes in our own credit risk; and (b) Change in the discount rates used to measure traditional and limited-payment long-duration insurance contracts.
NON-REDEEMABLE NONCONTROLLING INTEREST
The activity in non-redeemable noncontrolling interest primarily relates to activities with consolidated investment entities.
The changes in non-redeemable noncontrolling interest due to divestitures and acquisitions primarily relate to the formation and funding of new consolidated investment entities. The majority of the funding for these consolidated investment entities comes from affiliated companies of Corebridge.
The changes in non-redeemable noncontrolling interest due to contributions from noncontrolling interests primarily relate to the additional capital calls related to consolidated investment entities.
The changes in non-redeemable noncontrolling interest due to distributions to noncontrolling interests primarily relate to dividends or other distributions related to consolidated investment entities.
The following table presents a rollforward of non-redeemable noncontrolling interest:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Beginning balance
$
856
$
810
$
864
$
869
Net (loss) attributable to redeemable noncontrolling interest
(8)
(24)
(1)
(75)
Other comprehensive income (loss), net of tax
1
(1)
1
(2)
Changes in noncontrolling interests due to divestitures and acquisitions
—
—
—
1
Contributions from noncontrolling interests
30
32
38
53
Distributions to noncontrolling interests
(12)
(2)
(32)
(31)
Other
—
1
(3)
1
Ending balance
$
867
$
816
$
867
$
816
Refer to Note 8 for additional information related to Variable Interest Entities.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) 18. Earnings Per Common Share
18. Earnings Per Common Share
The basic earnings per common share (“EPS”) computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus common shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock splits, using the treasury stock method.
The following table presents the computation of basic and diluted EPS for the six months ended June 30, 2025 and 2024:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions, except per common share data)
2025
2024
2025
2024
Numerator for EPS:
Net income (loss)
$
(668)
$
341
$
(1,325)
$
1,168
Less: Net loss attributable to noncontrolling interests
(8)
(24)
(1)
(75)
Net income (loss) attributable to Corebridge
$
(660)
$
365
$
(1,324)
$
1,243
Denominator for EPS:
Weighted average common shares outstanding - basic
550.3
611.6
554.1
617.8
Dilutive common shares
—
1.0
—
0.9
Weighted average common shares outstanding - diluted
550.3
612.6
554.1
618.7
Income per common share attributable to Corebridge common shareholders
Common stock - basic
$
(1.20)
$
0.60
$
(2.39)
$
2.01
Common stock - diluted
$
(1.20)
$
0.59
$
(2.39)
$
2.01
*Potential dilutive common shares include our share-based employee compensation plans. The number of common shares excluded from dilutive shares outstanding was approximately 0.8 million and 0.1 million for the three months ended June 30, 2025 and 2024, respectively, and 0.6 million and 0.3 million for the six months ended June 30,2025 and 2024, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.
19. Income Taxes
RECENT TAX LAW CHANGES
The Inflation Reduction Act of 2022 (H.R. 5376) (the “Inflation Reduction Act”) includes a 15% corporate alternative minimum tax (“CAMT”) on adjusted financial statement income for corporations with average profits over $1 billion over a three-year period and a 1% stock buyback tax. In 2024, the U.S. Treasury and Internal Revenue Service (“IRS”) published the proposed regulations that would address the application of CAMT, which were open to public comment through January 16, 2025, and certain specifics of application of the CAMT remain subject to future guidance. Our estimated CAMT liability will continue to be refined based on future guidance.
The One Big Beautiful Bill Act (H.R. 1) (“OBBB”) was signed into law on July 4, 2025. The tax provisions of the OBBB are not expected to have a material impact on Corebridge’s financial results.
RECLASSIFICATION OF CERTAIN TAX EFFECTS FROM AOCI
We use an item-by-item approach to release the stranded or disproportionate income tax effects in AOCI related to our available-for-sale securities. Under this approach, a portion of the disproportionate tax effects is assigned to each individual security lot at the date the amount becomes lodged. When the individual securities are sold, mature or are otherwise impaired on an other-than-temporary basis, the assigned portion of the disproportionate tax effect is reclassified from AOCI to income (loss) from operations.
INTERIM TAX CALCULATION METHOD
We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual or infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily reclassification of certain tax effects from AOCI and realizability of deferred tax assets, and are recorded in the period in which the change occurs.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |19. Income Taxes
INTERIM TAX EXPENSE (BENEFIT)
For the three and six months ended June 30, 2025, the effective tax rate on loss from operations was (9.9)% and 9.9%, respectively. The effective tax rate on loss from operations differs from the statutory tax rate of 21% primarily due to tax benefits associated with dividends received deduction, non-controlling interest, reclassifications from AOCI to income from operations related to the disposal of available-for-sale securities, and tax adjustments related to prior year returns including interest. These tax benefits are offset by tax charges associated with increase in U.S. federal and state valuation allowance and state and local income taxes. Additionally, the six months ended June 30, 2025 reflects excess tax benefits related to share based compensation payments recorded through the income statement during first quarter 2025.
For the three and six months ended June 30, 2024, the effective tax rate on income from operations was 25.2% and 20.7%, respectively. The effective tax rate on loss from operations differs from the statutory tax rate of 21% primarily due to tax benefits associated with dividends received deduction, non-controlling interest, reclassifications from AOCI to income from operations related to the disposal of available-for-sale securities, renewable energy tax credits, and tax adjustments related to prior year returns including interest. These tax benefits are offset by tax charges associated with increases in U.S. federal and state valuation allowance and state and local income taxes. Additionally, the six months ended June 30, 2024 reflects excess tax benefits related to share based compensation payments recorded through the income statement during first quarter 2024.
ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCE
The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.
Recent events, including multiple changes in target interest rates by the Board of Governors of the Federal Reserve System and significant market volatility, impacted actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses and capital loss carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macroeconomic and Corebridge-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies.
Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies, impact of settlements with taxing authorities, and any changes to interpretations and assumptions related to the impact of recent tax law changes, could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period.
Under the tax law, AGC and its directly owned life insurance subsidiaries (the “AGC Group”) will not be permitted to join in the filing of a U.S. consolidated federal income tax return with our other subsidiaries (collectively, the “Non-Life Group”) for a five-year waiting period following the IPO. Each separate U.S. federal tax filing group or separate U.S. tax filer is required to consider this five-year waiting period when assessing realization of their respective deferred tax assets including net operating loss and tax credit carryforwards.
Our separation from AIG resulted in an “ownership change” for U.S. federal income tax purposes under Section 382 of the Code. As a result of the ownership change, a limitation has been imposed upon the utilization of our U.S. net operating loss carryforwards and certain built-in losses and deductions to offset future taxable income. Our utilization is limited to approximately $648 million per year. These limitation amounts accumulate for future use to the extent they are not utilized in a given year during the five-year period following the ownership change. We consider the limitation when assessing realization of our deferred tax assets, and if we believe that deferred tax assets consisting of the pre-ownership change net operating losses and other built-in losses and deductions are no longer more-likely-than-not to be realized, a valuation allowance will be provided.
Based on management’s analysis, as of June 30, 2025, we have a U.S. federal valuation allowance of $1.6 billion, of which $165 million is related to NOLs and $1.4 billion ($1.1 billion reflected in AOCI) is related to realized and unrealized capital losses. For the three months ended June 30, 2025, we recorded an increase in valuation allowance of $6 million related to NOLs and net increase (decrease) of $133 million related to investment losses, of which $175 million was recorded through P&L and $(42) million was recorded in OCI. For the six months ended June 30, 2025, we recorded an increase in valuation allowance of $14 million related to NOLs and net $175 million related to investment losses recorded through net income (loss).
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) |19. Income Taxes
TAX EXAMINATIONS AND LITIGATION
Corebridge Parent and certain U.S. subsidiaries are included in a consolidated U.S. federal income tax return with AIG through the date of IPO (short-period tax year 2022), and income tax expense is recorded, based on applicable U.S. and foreign laws.
The AIG Consolidated Tax Group is currently under IRS examination for the tax years 2011 through 2019 and is continuing to engage in the appeals process for years 2007 through 2010.
We are periodically advised of certain IRS and other adjustments identified in AIG's consolidated tax return which are attributable to our operations. Under our tax sharing arrangement, we provide a charge or credit for the effect of the adjustments and the related interest in the period we are advised of such adjustments and interest.
20. Related Parties
RELATED PARTY TRANSACTIONS
We may enter into a significant number of transactions with related parties in the normal course of business. Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions, or if a party, directly or indirectly through one or more of its intermediaries, controls, is controlled by or is under common control with an entity. Our material transactions with related parties are described below.
Related Party Transactions with AIG
We have historically entered into various transactions with AIG, some of which are continuing and are described below. In addition, on September 14, 2022, we entered into a Separation Agreement with AIG, which governs the relationship between AIG and us following the IPO, including matters related to the allocation of assets and liabilities between the parties, indemnification obligations, our corporate governance, information rights for each party and consent rights of AIG with respect to certain business activities that we may undertake. On May 16, 2024, in connection with the stock purchase agreement (the “Purchase Agreement”), between AIG and Nippon in connection with Nippon’s purchase of approximately 122 million shares of Company common stock, beneficially owned by AIG (the “Nippon Transaction”), the Company entered into an Amendment to the Separation Agreement, by and between the Company and AIG, pursuant to which the Company and AIG agreed to certain changes with respect to AIG’s board designation rights and AIG’s right to consent over certain actions by the Company, as set forth in the original Separation Agreement. Additionally, on June 9, 2024, AIG waived its right under the Separation Agreement to include a majority of the director candidates on each slate of candidates recommended by the Corebridge Board of Directors. For further information on the Nippon Transaction, the Separation Agreement and the amendment and waiver thereto, see Note 1 in the 2024 Form 10-K.
Our related party transactions with AIG include: (1) advisory transactions; (2) capital markets agreements; (3) general service agreements; (4) tax sharing agreements; (5) certain guarantees (6) employee compensation and benefits; and previously (6) reinsurance transactions. These transactions have not changed materially since December 31, 2024. For further information on related party transactions with AIG, see Note 23 in the 2024 Form 10-K.
Related Party Transactions with Blackstone Inc. (“Blackstone”)
Investment Expense
We entered into a long-term asset management relationship with Blackstone to manage a portion of our investment portfolio. The investment expense incurred were $80 million and $156 million for the three and six months ended June 30, 2025, respectively, and $60 million and $111 million for the three and six months ended June 30, 2024, respectively.
ITEM 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 20. Related Parties
Related Party Transactions with Variable Interest Entities
In the ordinary course of business, we enter into various arrangements with VIEs, and we consolidate the VIE if we are determined to be the primary beneficiary. In certain situations, we may have a variable interest in a VIE that is consolidated by an affiliate, and in other instances, affiliates may have variable interests in a VIE that is consolidated by us. The total debt of consolidated VIEs held by affiliates was $23 million and $23 million as of June 30, 2025 and December 31, 2024, respectively. The interest expense incurred on the debt reflected in Interest expense on the Condensed Consolidated Statements of Income (Loss) were $0 million and $0 million for the three and six months ended June 30, 2025, respectively, and $1 million and $2 million for the three and six months ended June 30, 2024, respectively.
The noncontrolling interest included in the Condensed Consolidated Balance Sheets related to the VIEs held by affiliates was $390 million and $400 million as of June 30, 2025 and December 31, 2024, respectively. The gain/(loss) attributable to noncontrolling interest of consolidated VIEs held by affiliates were $(12) million and $(8) million for the three and six months ended June 30, 2025, respectively, and $(18) million and $(39) million for the three and six months ended June 30, 2024, respectively.
In addition to transactions with VIEs, Corebridge has entered into other structured financing arrangements supporting real estate properties and other types of assets with other AIG affiliates. These financing arrangements are reported in Other invested assets in the Condensed Consolidated Balance Sheets. Certain of these and the VIE structures above also include commitments for funding from AIG affiliates of $0.6 billion and $0.6 billion at June 30, 2025 and December 31, 2024, respectively.
For additional information related to VIEs and other investments, see Notes 5 and 8.
Item 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations
Glossary and Acronyms of Selected Insurance Terms and References
Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), we use certain terms and abbreviations, which are summarized in the Glossary and Acronyms in the 2024 Form 10-K.
Corebridge has incorporated into this discussion a number of cross-references to additional information included throughout this Quarterly Report to assist readers seeking additional information related to a particular subject.
In this Quarterly Report, unless otherwise mentioned or unless the context indicates otherwise, we use the terms “Corebridge,” “we,” “us” and “our” to refer to Corebridge Financial, Inc., a Delaware corporation, and its consolidated subsidiaries. We use the term “Corebridge Parent” to refer solely to Corebridge Financial, Inc., and not to any of its consolidated subsidiaries.
This MD&A addresses the consolidated financial condition of Corebridge as of June 30, 2025, compared with December 31, 2024, and its consolidated results of operations for the three and six months ended June 30, 2025 and 2024. In addition to historical data, this discussion contains forward-looking statements about our business operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the (unaudited)Condensed Consolidated Financial Statements and the statements under “Cautionary Statements Regarding Forward-Looking Information,” included elsewhere in this Quarterly Report and the “Management’s Discussion and Analysis of Results of Operations and Financial Condition,” and the “Risk Factors” section in the 2024 Form 10-K.
We are one of the largest providers of retirement solutions and insurance products in the United States, committed to helping individuals plan, save for and achieve secure financial futures. We offer a broad set of products and services through our market leading Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses, each of which features capabilities and industry experience we believe are difficult to replicate. These four businesses collectively seek to enhance stockholder returns while maintaining our attractive risk profile, which has historically resulted in consistent and strong cash flow generation.
REVENUES
Our revenues come from five principal sources:
•Premiums are principally derived from our traditional life insurance and certain annuity products including PRT transactions and structured settlements with life contingencies. Our premium income is driven by growth in new policies and contracts written and persistency of our in-force policies, both of which are influenced by a combination of factors including our efforts to attract and retain customers and market conditions that influence demand for our products;
•Policy feesare principally derived from our individual retirement, group retirement, universal life insurance, Corporate Markets and SVW products. Our policy fees typically vary directly with the underlying account value or benefit base of our annuities. Account value and benefit base are influenced by changes in economic conditions, including changes in levels of equity prices, and changes in levels of interest rates and credit spreads, as well as net flows;
•Net investment incomefrom our investment portfolio varies as a result of the yield, allocation and size of our investment portfolio, which are, in turn, a function of capital market conditions and net flows into our total investments, as well as the expenses associated with managing our investment portfolio;
•Net realized gains (losses), net include changes in the Fortitude Re funds withheld embedded derivative, risk management related derivative activities (excluding hedges of certain MRBs), changes in the fair value of embedded derivatives in certain of our insurance products and trading activity within our investment portfolio, including trading activity related to the Fortitude Re modco arrangement. Net realized gains (losses) vary due to the timing of sales of investments as well as changes in the fair value of embedded derivatives in certain of our insurance products and derivatives utilized to hedge certain embedded derivatives; and
•Advisory fee income and other incomeincludes fees from registered investment advisory services, 12b-1 fees (marketing and distribution fees paid by mutual funds), other asset management fee income and commission-based broker-dealer services.
BENEFITS AND EXPENSES
Our benefits and expenses come from six principal sources:
•Policyholder benefits are driven primarily by customer withdrawals and surrenders from traditional products which change in response to changes in capital market conditions and changes in policy reserves, as well as life contingent benefit payments on life and annuity contracts and updates to assumptions related to future policyholder behavior, mortality and longevity;
•Interest credited to policyholder account balances varies in relation to the amount of the underlying account value or benefit base and also includes changes in the fair value of certain embedded derivatives related to our insurance products and amortization of deferred sales inducement assets;
•Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) for all contracts except for other investment contracts is amortized, on a constant level basis over the expected term of the related contracts, using assumptions consistent with those used in estimating the related liability for future policy benefits, or any other related balances, for those corresponding contracts, as applicable. VOBA is determined at the time of acquisition and is reported with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase;
•General operating expenses include expenses associated with conducting our business, including salaries, other employee-related compensation and other operating expenses such as professional services or travel;
•Change in the fair value of market risk benefits, net represents the changes in fair value of MRBs contained within certain insurance contracts (excluding the impact of changes in our own credit risk), including attributed fees, along with the changes in the fair value of derivatives that economically hedge MRBs. Changes in our own credit risk are included in OCI; and
•Interest expense represents the charges associated with our external debt obligations, including debt of consolidated investment entities. This expense varies based on the amount of debt on our balance sheet, as well as the rates of interest associated with those obligations. Interest expense related to consolidated investment entities principally relates to variable interest entities (“VIEs”) for which we are the primary beneficiary; however, creditors or beneficial interest holders of VIEs generally only have recourse to the assets and cash flows of the VIEs and do not have recourse to us except in limited circumstances when we have provided a guarantee to the VIE’s interest holders.
SIGNIFICANT FACTORS IMPACTING OUR RESULTS
The following significant factors have impacted, and may in the future impact, our business, results of operations, financial condition and liquidity.
Impact of Fortitude Re
In 2018, AIG established Fortitude Re, a wholly-owned subsidiary of Fortitude Group Holdings, LLC (“Fortitude Holdings”), in a series of reinsurance transactions related to certain of AIG’s legacy operations. In February 2018, AGL, VALIC and USL entered into modco agreements with Fortitude Re, a registered Class 4 and Class E reinsurer in Bermuda. Following the sale of AIG’s majority ownership interest in Fortitude Holdings, AIG contributed its remaining ownership in Fortitude Re Bermuda and its one seat on its Board of Managers to us. As of June 30, 2025, our ownership interest in Fortitude Re was 2.46%.
In the modco arrangement, the investments supporting the reinsurance agreements, which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AGL, VALIC and USL) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, since we maintain ownership of these investments, we reflect our existing accounting for these assets, which consist primarily of available-for-sale securities (e.g., the changes in fair value of available-for-sale securities are recognized within OCI) on our balance sheet. We have established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing liabilities for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of this derivative are recognized in Net realized gains (losses) on Fortitude Re funds withheld embedded derivative. This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets, primarily available-for-sale securities, associated with these reinsurance agreements. As the majority of the invested assets supporting the modco are fixed income securities that are available-for-sale, there is a mismatch between the accounting for the embedded derivative as its changes in fair value are recorded through net income while changes in the fair value of the fixed maturity securities available-for-sale are recorded through OCI.
Our net income experiences ongoing volatility as a result of the reinsurance agreements, which, as described above, give rise to a funds withheld payable that contains an embedded derivative. However, this net income volatility is almost entirely offset with a corresponding change in OCI, which reflects the fair value change from the investment portfolio supporting the funds withheld payable, which is primarily available-for-sale securities, resulting in minimal impact to our comprehensive income (loss) and equity attributable to Corebridge. The Company has also elected the fair value option on the acquisition of certain new fixed maturity securities, helping reduce the mismatch over time. VALIC’s modco agreement with Fortitude Re was recaptured effective January 1, 2025, resulting in a $45 million charge to pre-tax earnings. As of June 30, 2025, $24.5 billion of reserves had been ceded to Fortitude Re.
For additional information on our reinsurance agreements with Fortitude Re, see Note 7 to the Condensed Consolidated Financial Statements.
Impact of Variable Annuity Guaranteed Benefit Riders and Hedging
Our Individual Retirement and Group Retirement businesses offer variable annuity products with riders that provide guaranteed benefits. The liabilities are accounted for as MRBs and measured at fair value. The fair value of the MRBs may fluctuate significantly based on market interest rates, equity prices, credit spreads, market volatility, policyholder behavior and other factors.
In addition to risk-mitigating features in our variable annuity product design, we have an economic hedging program designed to manage market risk from GMWBs, including exposures to changes in interest rates, equity prices, credit spreads and volatility. The hedging program includes all in-force GMWB policies and utilizes derivative instruments, including, but not limited to, equity options, futures contracts and interest rate swap and option contracts, as well as fixed maturity securities.
For additional information regarding Corebridge’s impact of Variable Annuity Guaranteed Benefit Riders and Hedging, see “Future Policy Benefits, Policyholder Contract Deposits and Market Risk Benefits — Variable Annuity Guaranteed Benefits and Hedging Results.”
Embedded Derivatives for Fixed Index Annuity, Registered Index-Linked Annuity and Index Universal Life Products
Fixed index annuity and registered index-linked annuity contracts contain index interest credits which are accounted for as embedded derivatives and our index universal life insurance products also contain embedded derivatives. In contrast to fixed index annuity contracts, registered index-linked annuity contract owners also accept limited exposure to negative index interest credits in return for higher potential positive index credits. Policyholders may elect to rebalance among the various crediting strategies within the product at specified renewal dates. At the end of each index term, we generally have the opportunity to re-price the index component by establishing different participation rates or caps on index credited rates. The index crediting feature of these products results in the recognition of an embedded derivative that is required to be bifurcated from the host contract and carried at fair value with changes in the fair value of the liabilities recorded in Net realized gains (losses). Option pricing models are used to estimate fair value, taking into account assumptions for future index growth rates, volatility of the index, future interest rates and our ability to adjust the participation rate and the cap on index credited rates in light of market conditions and policyholder behavior assumptions.
The following table summarizes the fair values of the embedded derivatives for fixed index annuity, registered index-linked annuity and index universal life products:
(in millions)
June 30, 2025
December 31, 2024
Fixed index annuities and Registered index-linked annuities
$
9,570
$
8,407
Index universal life
$
1,134
$
1,008
Our Strategic Partnership with Blackstone
In 2021, we entered into a long-term asset management relationship with Blackstone IM. As of June 30, 2025, Blackstone managed approximately $70.2 billion in book value of assets in our investment portfolio.
For additional information on our Strategic Partnership with Blackstone, see “Investments” below.
Our Investment Management Agreements with BlackRock
Since April 2022, we entered into investment management agreements with BlackRock and its investment advisory affiliates. As of June 30, 2025, BlackRock managed approximately $89.7 billion in book value of assets in our investment portfolio, consisting of liquid fixed income and certain private placement assets.
For additional information on our Investment Management Agreements with BlackRock, see “Investments” below.
See “Business—Investment Management—Our Investment Management Agreements with BlackRock in the 2024 Form 10-K.”
Fair Value Option Bond Securities
We elect the fair value option on certain bond securities. When the fair value option is elected, the realized and unrealized gains and losses on these securities are reported in net investment income.
The following table shows the net investment income reported on fair value option bond securities:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Net investment income - excluding Fortitude Re funds withheld assets
$
21
$
13
$
40
$
26
Net investment income - Fortitude Re funds withheld assets
80
78
200
149
Total
$
101
$
91
$
240
$
175
COREBRIDGE’S MACROECONOMIC, INDUSTRY AND REGULATORY TRENDS
Our business is affected by industry and economic factors such as changes in interest rates and credit spreads; geopolitical tensions (including the ongoing armed conflictsbetween Ukraine and Russia and in the Middle East); credit and equity market conditions; currency exchange rates; regulation; tax policy; competition; trade disputes with other countries, including the effect of sanctions and trade restrictions, such as tariffs and trade barriers imposed by the U.S. government and any countermeasures by other governments in response to such tariffs; and general economic, market and political conditions. We continued to operate under market conditions in 2025 and 2024 characterized by factors such as higher interest rates, inflationary pressures, an uneven global economic recovery and global trade tensions. Responses by central banks and monetary authorities with respect to inflation, growth concerns and other macroeconomic factors have also affected global exchange rates and volatility.
Below is a discussion of certain industry and economic factors impacting our business:
Equity Markets
Our financial results are impacted by the performance of equity markets, which impacts the performance of our alternative investment portfolio, fee income, MRBs and embedded derivatives. For instance, in our variable annuity separate accounts, mutual fund assets and brokerage and advisory assets, we generally earn fee income based on the account value, which fluctuates with the equity markets as a significant amount of these assets are invested in equity funds. The impact of equity market returns, both increases and decreases, is reflected in our results due to the impact on the account value and the fair values of equity-exposed securities in our investment portfolio.
Our hedging costs could also be significantly impacted by changes in the level of equity markets as rebalancing and option costs are tied to the equity market volatility. These hedging costs are partially offset by our rider fees that are tied to the level of the volatility index (“VIX”). As rebalancing and option costs increase or decrease, the rider fees will increase or decrease partially offsetting the hedging costs incurred.
For additional information see “Risk Factors—Risks Relating to Market Conditions—We are exposed to risk from equity market declines or volatility” in the 2024 Form 10-K.
Market and other economic factors may result in increased credit impairments, downgrades and losses across single or numerous asset classes due to lower collateral values or deteriorating cash flow and profitability by borrowers could lead to higher defaults on our investment portfolio, especially in geographic, industry or investment sectors where we have higher concentrations of exposure, such as real estate related borrowings. These factors can also cause widening of credit spreads which could reduce investment asset valuations, decrease fee income and increase statutory capital requirements, as well as reduce the availability of investments that are attractive from a risk-adjusted perspective.
For additional information see “Risk Factors—Risks Relating to Market Conditions—Our business is highly dependent on economic and capital market conditions” in the 2024 Form 10-K.
Alternative investments include private equity funds which are generally reported on a one-quarter lag. Accordingly, changes in valuations driven by equity market conditions during the second quarter of 2025 may impact the private equity investments in the alternative investments portfolio in the third quarter of 2025.
Impact of Changes in the Interest Rate Environment
A rising interest rate environment benefits our spread income as we reinvest cash flows from existing business at higher rates and should have a positive impact on sales of spread-based products.
As of June 30, 2025, new investments continue to have higher yields than the yield on maturities and redemptions that we are experiencing in our existing portfolios. We actively manage our exposure to the interest rate environment through portfolio construction and asset-liability management, including spread management strategies for our investment-oriented products and economic hedging of interest rate risk from guarantee features in our variable annuities, but we may not be able to fully mitigate our interest rate risk by matching exposure of our assets relative to our liabilities.
Fluctuations in interest rates may result in changes to certain statutory reserve or capital requirements that are based on formulas or models that consider interest rates or prescribed interest rates, such as cash flow testing. Rising interest rates can have a mixed impact on statutory financials due to higher surrender activity, particularly for fixed annuities, offset by potentially lower reserves for other products under various statutory reserving frameworks.
Annuity Sales and Surrenders
Rising interest rates could create the potential for increased sales but could also drive higher surrenders relative to what we have historically experienced. Fixed annuities have surrender charge periods, generally in the three-to-seven-year range. Fixed index annuities have surrender charge periods, generally in the five-to-ten-year range, and within our Group Retirement segment, certain of our fixed investment options are subject to other withdrawal restrictions, which may help mitigate increased early surrenders in a rising rate environment. In addition, older contracts that have higher minimum interest rates and continue to be attractive to contract holders have driven better than expected persistency in fixed annuities, although the liabilities for such contracts have continued to decrease over time in amount and as a percentage of the total annuity portfolio. We closely monitor surrenders of fixed annuities as contracts with lower minimum interest rates come out of the surrender charge period.
Reinvestment and Spread Management
We actively monitor fixed income markets, including the level of interest rates, credit spreads and the shape of the yield curve. We also frequently review our interest rate assumptions and actively manage the crediting rates used for new and in-force business. Business strategies continue to evolve and we attempt to maintain profitability of the overall business in light of the interest rate environment. A rising interest rate environment results in improved yields on new investments and improves margins for our business while also making certain products, such as fixed annuities, more attractive to potential customers. However, the rising rate environment has resulted in lower values on general and separate account assets, mutual fund assets and brokerage and advisory assets that hold investments in fixed income assets.
For investment-oriented products, including universal life insurance, and variable, fixed, fixed index and registered index-linked annuities in each of our operating and reportable segments, our spread management strategies include disciplined pricing and product design for new business, modifying or limiting the sale of products that do not achieve targeted spreads, using asset-liability management to match assets to liabilities to the extent practicable and actively managing crediting rates to help mitigate some of the pressure on investment spreads. Renewal crediting rate management is guided by specific contract provisions designed to allow crediting rates to be reset at pre-established intervals and subject to minimum crediting rate guarantees. We expect to continue to adjust crediting rates on in-force business, as appropriate, to be responsive to changing rate environments. As interest rates rise, we may need to raise crediting rates on in-force business for competitive and other reasons, potentially offsetting a portion of the additional investment income resulting from investing in a higher interest rate environment.
Of the aggregate fixed account values of our Individual Retirement and Group Retirement annuity products, 44% and 47% were crediting at the contractual minimum guaranteed interest rate at June 30, 2025 and December 31, 2024, respectively. In the universal life insurance products in our Life Insurance business, 59% and 59% of the account values were crediting at the contractual minimum guaranteed interest rate at June 30, 2025 and December 31, 2024, respectively. These businesses continue to focus on pricing discipline and strategies to manage the minimum guaranteed interest crediting rates offered on new sales in the context of regulatory requirements and competitive positioning.
For additional information on our investment and asset-liability management strategies, see “Investments” below.
Regulatory Environment
The insurance and financial services industries are generally subject to close regulatory scrutiny and supervision. Our operations are subject to regulation by a number of different types of domestic and international regulatory authorities, including securities, derivatives and investment advisory regulators. Our insurance subsidiaries are subject to regulation and supervision by the states and jurisdictions in which they do business.
We expect that the domestic and international regulations applicable to us and our regulated entities will continue to evolve for the foreseeable future.
For example, on April 25, 2024, the Department of Labor (“DOL”) published a final rule in the Federal Register updating the definition for when a person is an “investment advice fiduciary” for purposes of transactions with ERISA qualified plans, related plan participants and IRAs. The DOL also published changes with respect to existing prohibited transactions exemptions (“PTEs”) relating to such advice, including PTE 84-24 and PTE 2020-02. Orders staying the rule’s September 23, 2024 effective date were issued by the U.S. District Courts for the Eastern District of Texas and the Northern District of Texas on July 25, 2024 and July 26, 2024, respectively, in connection with separate lawsuits challenging the rule. On December 20, 2024, DOL filed a consolidated opening brief, appealing these two orders to the United States Court of Appeals for the Fifth Circuit. Since filing this appeal, DOL has asked the Fifth Circuit to hold the case in abeyance on three occasions. The matter is currently stayed until August 15, 2025. We are actively monitoring the progress of the litigation while continuing to evaluate potential impact of the DOL rule to our business.
In February 2025, the NAIC announced the creation of a new Risk-Based Capital Model Governance (EX) Task Force as part of its efforts to update and strengthen the governance framework around risk-based capital requirements. The task force will consider changes to risk-based capital formulas used by insurance companies as a measure of solvency and conduct a gap-analysis to identify areas for improvement. The work of the task force is ongoing and could result in changes to risk-based capital requirements and calculations in the future, which could affect our capital planning, investment strategies and reporting obligations. We are actively monitoring developments associated with this NAIC initiative and its potential impacts on our life insurance subsidiaries.
In March 2025, the NAIC exposed for comment and in June 2025 the Life Actuarial Task Force adopted updates to actuarial guidelines intended to enhance asset adequacy analysis for asset-intensive, life insurance and annuity reinsurance treaties above certain thresholds. The updated guidelines are still subject to vote by additional NAIC committees before being sent to the states for adoption. The updated guidelines require the use of cash flow testing methodology in evaluating the adequacy of assets supporting ceded reserves. The updated guidelines are designed as a testing and disclosure regime, but such disclosure could be used by regulators in their supervision of insurance companies. The Life Actuarial Task Force expects the first reinsurance asset testing reports to be due in April 2026. In addition, the NAIC plans to review the disclosures following adoption of the guidelines to identify concerns with insurers’ approaches to asset adequacy testing, with the possibility of making additional changes that could lead to higher reserves for certain reinsurance agreements. We are actively monitoring developments associated with this NAIC initiative, which may be applicable to certain transactions that involve our life insurance subsidiaries acting as cedants.
For information regarding our regulation and supervision by different regulatory authorities in the United States and abroad, see “Business—Regulation—U.S. Regulation” and “Business—Regulation—International Regulation” in the 2024 Form 10-K.
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
Use of Non-GAAP Financial Measures and Key Operating Metrics
NON-GAAP FINANCIAL MEASURES
Throughout this MD&A, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are “non-GAAP financial measures” under SEC rules and regulations. We believe presentation of these non-GAAP financial measures allows for a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. These measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with GAAP and should not be viewed as a substitute for GAAP measures. The non-GAAP financial measures we present may not be comparable to similarly named measures reported by other companies. Reconciliations of non-GAAP financial measures for future periods are not provided as we do not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliations.
Adjusted revenues exclude Net realized gains (losses) except for gains (losses) related to the disposition of real estate investments, income from non-operating litigation settlements (included in Other income for GAAP purposes) and changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes).
The following table presents a reconciliation of Total revenues to Adjusted revenues:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Total revenues
$
2,744
$
3,710
$
6,334
$
9,546
Fortitude Re related items:
Net investment (income) on Fortitude Re funds withheld assets
(343)
(325)
(674)
(657)
Net realized loses on Fortitude Re funds withheld assets
30
93
26
257
Net realized (gains) losses on Fortitude Re funds withheld embedded derivatives
251
(36)
847
(58)
Subtotal - Fortitude Re related items
(62)
(268)
199
(458)
Other non-Fortitude Re reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits
(14)
(13)
(28)
(31)
Other (income) - net
(8)
(11)
(16)
(17)
Net realized losses*
1,760
758
2,667
989
Subtotal - Other non-Fortitude Re reconciling items
1,738
734
2,623
941
Total adjustments
1,676
466
2,822
483
Adjusted revenues
$
4,420
$
4,176
$
9,156
$
10,029
*Represents all Net realized gains and losses except gains (losses) related to the disposition of real estate investments and earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income for non-qualifying (economic) hedging or for asset replication is reclassified from Net realized gains and losses to specific APTOI line items (e.g., net investment income and interest credited to policyholder account balances) based on the economic risk being hedged.
Adjusted pre-tax operating income (“APTOI”) is derived by excluding the items set forth below from income (loss) before income tax expense (benefit). 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 recording adjustments to APTOI that we believe to be common in our industry. We believe the adjustments to pre-tax income are useful for gaining an understanding of our overall results of operations.
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.
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
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 those 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 BENEFIT ADJUSTMENTS:
Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain GMWBs and/or 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.
Adjusted after-tax operating income attributable to our common shareholders (“Adjusted After-tax Operating Income” or “AATOI”) is derived by excluding the tax effected APTOI adjustments described above, as well as the following tax items from net income attributable to us:
•reclassifications of disproportionate tax effects from AOCI, changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and
•deferred income tax valuation allowance releases and charges.
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
The following tables present a reconciliation of pre-tax income (loss)/net income (loss) attributable to Corebridge to adjusted pre-tax operating income (loss)/adjusted after-tax operating income (loss) attributable to Corebridge:
Three Months Ended June 30,
2025
2024
(in millions)
Pre-tax
Total Tax (Benefit) Charge
Non- controlling Interests
After Tax
Pre-tax
Total Tax (Benefit) Charge
Non- controlling Interests
After Tax
Pre-tax income (loss)/net income (loss), including noncontrolling interests
$
(608)
$
60
$
—
$
(668)
$
456
$
115
$
—
$
341
Noncontrolling interests
—
—
8
8
—
—
24
24
Pre-tax income (loss)/net income (loss) attributable to Corebridge
(608)
60
8
(660)
456
115
24
365
Fortitude Re related items
Net investment (income) on Fortitude Re funds withheld assets
(343)
(73)
—
(270)
(325)
(69)
—
(256)
Net realized losses on Fortitude Re funds withheld assets
30
7
—
23
93
20
—
73
Net realized (gains) losses on Fortitude Re funds withheld embedded derivative
251
53
—
198
(36)
(7)
—
(29)
Subtotal Fortitude Re related items
(62)
(13)
—
(49)
(268)
(56)
—
(212)
Other reconciling Items
Reclassification of disproportionate tax effects from AOCI and other tax adjustments
—
(6)
—
6
—
52
—
(52)
Deferred income tax valuation allowance (releases) charges
—
(186)
—
186
—
(87)
—
87
Changes in fair value of market risk benefits, net
(279)
(59)
—
(220)
25
5
—
20
Changes in fair value of securities used to hedge guaranteed living benefits
(1)
—
—
(1)
5
1
—
4
Changes in benefit reserves related to net realized (losses)
(4)
(1)
—
(3)
(3)
—
—
(3)
Net realized losses*
1,758
369
—
1,389
748
160
—
588
Separation costs
—
—
—
—
27
6
—
21
Restructuring and other costs
129
28
—
101
85
18
—
67
Non-recurring costs related to regulatory or accounting changes
1
—
—
1
1
—
—
1
Net (gain) on divestiture
—
—
—
—
(241)
(47)
—
(194)
Noncontrolling interests
8
—
(8)
—
24
—
(24)
—
Subtotal Other non-Fortitude Re reconciling items
1,612
145
(8)
1,459
671
108
(24)
539
Total adjustments
1,550
132
(8)
1,410
403
52
(24)
327
Adjusted pre-tax operating income/Adjusted after-tax operating income attributable to Corebridge
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
Six Months Ended June 30,
2025
2024
(in millions)
Pre-tax
Total Tax (Benefit) Charge
Non- controlling Interests
After Tax
Pre-tax
Total Tax (Benefit) Charge
Non- controlling Interests
After Tax
Pre-tax income (loss)/net income (loss), including noncontrolling interests
$
(1,470)
$
(145)
$
—
$
(1,325)
$
1,472
$
304
$
—
$
1,168
Noncontrolling interests
—
—
1
1
—
—
75
75
Pre-tax income (loss)/net income (loss) attributable to Corebridge
(1,470)
(145)
1
(1,324)
1,472
304
75
1,243
Fortitude Re related items
Net investment (income) on Fortitude Re funds withheld assets
(674)
(144)
—
(530)
(657)
(140)
—
(517)
Net realized losses on Fortitude Re funds withheld assets
26
6
—
20
257
55
—
202
Net realized (gains) losses on Fortitude Re funds withheld embedded derivative
847
180
—
667
(58)
(12)
—
(46)
Subtotal Fortitude Re related items
199
42
—
157
(458)
(97)
—
(361)
Other reconciling items
Reclassification of disproportionate tax effects from AOCI and other tax adjustments
—
15
—
(15)
—
78
—
(78)
Deferred income tax valuation allowance (releases) charges
—
(194)
—
194
—
(104)
—
104
Changes in fair value of market risk benefits, net
106
22
—
84
(344)
(72)
—
(272)
Changes in fair value of securities used to hedge guaranteed living benefits
(2)
—
—
(2)
6
1
—
5
Changes in benefit reserves related to net realized gains (losses)
27
6
—
21
(6)
(1)
—
(5)
Net realized losses*
2,663
559
—
2,104
970
207
—
763
Separation costs
—
—
—
—
94
20
—
74
Restructuring and other costs
226
48
—
178
132
28
—
104
Non-recurring costs related to regulatory or accounting changes
2
—
—
2
1
—
—
1
Net (gain) on divestiture
—
—
—
—
(246)
(48)
—
(198)
Noncontrolling interests
1
—
(1)
—
75
—
(75)
—
Subtotal Other non-Fortitude Re reconciling items
3,023
456
(1)
2,566
682
109
(75)
498
Total adjustments
3,222
498
(1)
2,723
224
12
(75)
137
Adjusted pre-tax operating income/Adjusted after-tax operating income attributable to Corebridge
$
1,752
$
353
$
—
$
1,399
$
1,696
$
316
$
—
$
1,380
*Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Additionally, gains (losses) related to the disposition of real estate investments are also excluded from this adjustment.
Adjusted Book Value is derived by excluding AOCI, adjusted for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets. We believe this measure is useful to investors as it eliminates the asymmetrical impact resulting from changes in fair value of our available-for-sale securities portfolio for which there is largely no offsetting impact for certain related insurance liabilities that are not recorded at fair value with changes in fair value recorded through OCI. It also eliminates asymmetrical impacts where our own credit non-performance risk is recorded through OCI. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets since these fair value movements are economically transferred to Fortitude Re.
The following table presents the reconciliation of Book value per common share to Adjusted book value per common share:
At June 30,
At December 31,
(in millions, except per common share data)
2025
2024
Total Corebridge shareholders' equity (a)
$
12,302
$
11,462
Less: Accumulated other comprehensive income (loss)
(10,633)
(13,681)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
Adjusted Return on Average Equity (“Adjusted ROAE”)is derived by dividing AATOI by average Adjusted Book Value and is used by management to evaluate our recurring profitability and evaluate trends in our business. We believe this measure is useful to investors as it eliminates the asymmetrical impact resulting from changes in fair value of our available-for-sale securities portfolio for which there is largely no offsetting impact for certain related insurance liabilities that are not recorded at fair value with changes in fair value recorded through OCI. It also eliminates asymmetrical impacts where our own credit non-performance risk is recorded through OCI. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets since these fair value movements are economically transferred to Fortitude Re.
The following table presents the reconciliation of Adjusted ROAE:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions, unless otherwise noted)
2025
2024
2025
2024
Actual or annualized net income (loss) attributable to Corebridge shareholders (a)
$
(2,640)
$
1,460
$
(2,648)
$
2,486
Actual or annualized adjusted after-tax operating income attributable to Corebridge shareholders (b)
3,000
2,768
2,798
2,760
Average Corebridge shareholders’ equity (c)
12,141
11,286
11,915
11,446
Less: Average AOCI
(11,341)
(14,324)
(12,121)
(14,035)
Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets
(2,570)
(2,609)
(2,646)
(2,517)
Average Adjusted Book Value (d)
$
20,912
$
23,001
$
21,390
$
22,964
Return on Average Equity (a/c)
(21.7)
%
12.9
%
(22.2)
%
21.7
%
Adjusted ROAE (b/d)
14.3
%
12.0
%
13.1
%
12.0
%
Premiums and deposits is a non-GAAP financial measure that includes direct and assumed premiums received and earned on traditional life insurance policies and life-contingent payout annuities, as well as deposits received on universal life insurance, investment-type annuity contracts and GICs. We believe the measure of premiums and deposits is useful in understanding customer demand for our products, evolving product trends and our sales performance period over period.
The following table presents the premiums and deposits:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Individual Retirement
Premiums
$
44
$
30
$
71
$
71
Deposits
6,811
6,761
11,490
11,583
Other(a)
(1)
(4)
(6)
(6)
Premiums and deposits
6,854
6,787
11,555
11,648
Group Retirement
Premiums
—
—
4
5
Deposits
1,976
1,998
3,796
4,047
Premiums and deposits(b)(c)
1,976
1,998
3,800
4,052
Life Insurance
Premiums
377
331
717
765
Deposits
393
389
790
782
Other(a)
98
126
217
393
Premiums and deposits
868
846
1,724
1,940
Institutional Markets
Premiums
25
167
525
1,963
Deposits
1,102
1,871
2,535
2,652
Other(a)
8
10
17
19
Premiums and deposits
1,135
2,048
3,077
4,634
Total
Premiums
446
528
1,317
2,804
Deposits
10,282
11,019
18,611
19,064
Other(a)
105
132
228
406
Premiums and deposits
$
10,833
$
11,679
$
20,156
$
22,274
(a)Other principally consists of ceded premiums, in order to reflect gross premiums and deposits.
(b)Excludes client deposits into advisory and brokerage accounts of $744 million and $783 million for the three months ended June 30, 2025 and 2024, respectively, and $1.5 billion and $1.5 billion for the six months ended June 30, 2025 and 2024, respectively.
(c)Includes inflows related to in-plan mutual funds of $842 million and $790 million for the three months ended June 30, 2025 and 2024, respectively, and $1.6 billion and $1.6 billion for the six months ended June 30, 2025 and 2024, respectively.
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
Net investment income (APTOI basis)is the sum of base portfolio income and variable investment income. We believe that presenting net investment income on an APTOI basis is useful for gaining an understanding of the main drivers of investment income.
The following table presents a reconciliation of net investment income (net income basis) to net investment income (APTOI basis):
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Net investment income (net income basis)
$
3,338
$
2,988
$
6,527
$
5,912
Net investment (income) on Fortitude Re funds withheld assets
(343)
(325)
(674)
(657)
Change in fair value of securities used to hedge guaranteed living benefits
(14)
(13)
(28)
(31)
Other adjustments
(8)
(11)
(16)
(17)
Derivative income recorded in net realized gains (losses)
77
77
149
138
Total adjustments
(288)
(272)
(569)
(567)
Net investment income (APTOI basis)
$
3,050
$
2,716
$
5,958
$
5,345
KEY OPERATING METRICS
Assets Under Management and Administration
Assets Under Management (“AUM”)include assets in the general and separate accounts of our subsidiaries that support liabilities and surplus related to our life and annuity insurance products.
Assets Under Administration (“AUA”) includeGroup Retirement mutual fund assets and other third-party assets that we sell or administer and the notional value of SVW contracts.
Assets Under Management and Administration (“AUMA”) is the cumulative amount of AUM and AUA.
The following table presents a summary of our AUMA:
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
Fee and Spread income and Underwriting Margin
Fee incomeis defined as policy fees plus advisory fees plus other fee income. For our Institutional Markets segment, its SVW products generate fee income.
Spread income is defined as net investment income less interest credited to policyholder account balances, exclusive of amortization of deferred sales inducement assets. Spread income is comprised of both base spread income and variable investment income. For our Institutional Markets segment, its structured settlements, PRT and GIC products generate spread income, which includes premiums, net investment income, less interest credited and policyholder benefits and excludes the annual assumption update.
Underwriting margin for our Life Insurance segment includes premiums, policy fees, other income, net investment income, less interest credited to policyholder account balances and policyholder benefits and excludes the annual assumption update. For our Institutional Markets segment, its Corporate Markets products generate underwriting margin, which includes premiums, net investment income, policy and advisory fee income, less interest credited and policyholder benefits and excludes the annual assumption update.
Base portfolio incomeincludes interest, dividends and foreclosed real estate income, net of investment expenses and non-qualifying (economic) hedges.
Variable investment incomeincludes call and tender income from make-whole payments on commercial mortgage loan prepayments, changes in market value of investments accounted for under the fair value option, interest received on defaulted investments (other than foreclosed real estate), income from alternative investments and other miscellaneous investment income, including income of certain partnership entities that are required to be consolidated. Alternative investments include private equity funds which are generally reported on a one-quarter lag.
Base spread income means base portfolio income less interest credited to policyholder account balances, excluding the amortization of deferred sales inducement assets.
Base net investment spread means base yield less cost of funds, excluding the amortization of deferred sales inducement assets.
Base yield means the returns from base portfolio income including accretion and impacts from holding cash and short-term investments.
The following table presents a summary of our spread income, fee income and underwriting margin:
ITEM 2 | Use of Non-GAAP Financial Measures and Key Operating Metrics
Net Investment Income (APTOI Basis)
The following table presents a summary of our four insurance operating businesses’ net investment income on an APTOI basis:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Individual Retirement
Base portfolio income
$
1,506
$
1,374
$
2,965
$
2,709
Variable investment income
79
31
106
35
Net investment income
1,585
1,405
3,071
2,744
Group Retirement
Base portfolio income
445
476
906
970
Variable investment income
24
11
48
12
Net investment income
469
487
954
982
Life Insurance
Base portfolio income
329
315
661
642
Variable investment income
6
7
10
6
Net investment income
335
322
671
648
Institutional Markets
Base portfolio income
565
484
1,117
973
Variable investment income
89
5
126
3
Net investment income
654
489
1,243
976
Total
Base portfolio income
2,845
2,649
5,649
5,294
Variable investment income
198
54
290
56
Net investment income (APTOI basis) - Insurance operations
$
3,043
$
2,703
$
5,939
$
5,350
Net Flows
Net flows for annuity products in Individual Retirement and Group Retirement represent premiums and deposits less death, surrender and other withdrawal benefits. Net flows for mutual funds represent deposits less withdrawals. For Group Retirement, client deposits into advisory and brokerage accounts less total client withdrawals from advisory and brokerage accounts are not included in net flows.
The following table presents a summary of our Net Flows:
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and six months ended June 30, 2025 and 2024. For factors that relate primarily to a specific business, see “— Business Segment Operations.”
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Revenues:
Premiums
$
464
$
547
$
1,353
$
2,842
Policy fees
721
721
1,441
1,435
Net investment income
3,338
2,988
6,527
5,912
Net realized (losses)
(1,975)
(747)
(3,389)
(1,067)
Advisory fee and other income
196
201
402
424
Total revenues
2,744
3,710
6,334
9,546
Benefits and expenses:
Policyholder benefits
982
1,049
2,439
3,856
Change in the fair value of market risk benefits, net
(279)
25
106
(344)
Interest credited to policyholder account balances
1,486
1,274
2,903
2,473
Amortization of deferred policy acquisition costs and value of business acquired
275
260
550
527
Non-deferrable insurance commissions
152
146
308
289
Advisory fee expenses
64
71
134
139
General operating expenses
535
532
1,079
1,104
Interest expense
137
138
285
276
Net (gain) on divestitures
—
(241)
—
(246)
Total benefits and expenses
3,352
3,254
7,804
8,074
Income (loss) before income tax expense (benefit)
(608)
456
(1,470)
1,472
Income tax expense (benefit)
60
115
(145)
304
Net income (loss)
(668)
341
(1,325)
1,168
Less: Net (loss) attributable to noncontrolling interests
(8)
(24)
(1)
(75)
Net income (loss) attributable to Corebridge
$
(660)
$
365
$
(1,324)
$
1,243
The following table presents certain balance sheet data:.
(in millions, except per common share data)
June 30, 2025
December 31, 2024
Balance sheet data:
Total assets
$
399,163
$
389,397
Short-term and long-term debt
$
9,456
$
10,454
Debt of consolidated investment entities
$
1,893
$
1,938
Total Corebridge shareholders’ equity
$
12,302
$
11,462
Book value per common share
$
22.65
$
20.41
Adjusted book value per common share
$
37.46
$
39.80
Financial Highlights
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Net Income Comparison
Income (loss) before income tax expense (benefit)
We recorded a pre-tax loss of $608 million in the three months ended June 30, 2025 compared to pre-tax income of $456 million in the three months ended June 30, 2024. The change in pre-tax results was primarily due to:
•higher net realized losses of $1.2 billion primarily driven by higher losses on foreign exchange transactions, losses from derivatives, losses from index-linked interest credited embedded derivatives, net of related hedges, higher losses on the Fortitude Re balances including, the funds withheld embedded derivative and higher realized losses on sales of AFS securities including, a $250 million intent to sell realized loss recognized in 2025;
•Net gain of $241 million from the sale of AIG Life U.K. in 2024;
•higher interest credited to policyholder account balances of $212 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business; and
•lower premiums of $83 million primarily on new pension risk transfer business.
Partially offset by:
•higher net investment income of $350 million primarily driven by higher base portfolio income and higher variable investment income;
•favorable change in the fair value of market risk benefits, net of $304 million primarily driven by higher equity market performance compared to the comparable period in the prior year; and
•lower policyholder benefits of $67 million primarily on new pension risk transfer business.
Income tax expense (benefit)
For the three months ended June 30, 2025, there was an income tax expense of $60 million on loss from operations, resulting in an effective tax rate on loss from operations of (9.9)%.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Net Income Comparison
We recorded a pre-tax loss of $1.5 billion in the six months ended June 30, 2025 compared to pre-tax income of $1.5 billion in the six months ended June 30, 2024. The change in pre-tax results was primarily due to:
•higher net realized losses of $2.3 billion primarily driven by higher losses on foreign exchange transactions, losses from derivatives, losses from index-linked interest credited embedded derivatives, net of related hedges, higher losses on the Fortitude Re balances including, the funds withheld embedded derivative and higher realized losses on sales of AFS securities including, $203 million higher intent to sell realized losses;
•lower premiums of $1.5 billion primarily on new pension risk transfer business;
•unfavorable change in the fair value of market risk benefits, net of $450 million primarily driven by the impacts of relative changes in interest rates and lower equity market performance compared to the comparable period in the prior year;
•higher interest credited to policyholder account balances of $430 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business; and
•Net gain of $246 million from the sale of AIG Life U.K. in 2024.
Partially offset by:
•lower policyholder benefits of $1.4 billion primarily on new pension risk transfer business; and
•higher net investment income of $615 million primarily driven by higher base portfolio income and higher variable investment income.
Income tax expense (benefit)
For the six months ended June 30, 2025, there was an income tax benefit of $145 million on loss from operations, resulting in an effective tax rate on loss from operations of 9.9%.
The following table presents total Corebridge’s adjusted pre-tax operating income:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Premiums
$
464
$
547
$
1,353
$
2,842
Policy fees
721
721
1,441
1,435
Net investment income
3,050
2,716
5,958
5,345
Net realized gains (losses)*
(11)
(9)
2
(17)
Advisory fee and other income
196
201
402
424
Total adjusted revenues
4,420
4,176
9,156
10,029
Policyholder benefits
986
1,052
2,412
3,862
Interest credited to policyholder account balances
1,475
1,266
2,881
2,455
Amortization of deferred policy acquisition costs
275
260
550
527
Non-deferrable insurance commissions
152
146
308
289
Advisory fee expenses
64
71
134
139
General operating expenses
405
419
851
877
Interest expense
129
127
269
259
Total benefits and expenses
3,486
3,341
7,405
8,408
Noncontrolling interests
8
24
1
75
Adjusted pre-tax operating income
$
942
$
859
$
1,752
$
1,696
*Net realized gains (losses) includes the gains (losses) related to the disposition of real estate investments.
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 APTOI Comparison
APTOI increased $83 million, primarily due to:
•higher net investment income of $334 million primarily driven by higher base portfolio income and higher variable investment income; and
•lower policyholder benefits of $66 million primarily on new pension risk transfer business.
Partially offset by:
•higher interest credited to policyholder account balances of $209 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business; and
•lower premiums of $83 million primarily on new pension risk transfer business.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 APTOI Comparison
APTOI increased $56 million, primarily due to:
•lower policyholder benefits of $1.5 billion primarily on new pension risk transfer business;
•higher net investment income of $613 million primarily driven by higher base portfolio income and higher variable investment income; and
•lower income attributable to noncontrolling interest of $74 million.
Partially offset by:
•lower premiums of $1.5 billion primarily on new pension risk transfer business; and
•higher interest credited to policyholder account balances of $426 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business.
Our business operations consist of five reportable segments:
•Individual Retirement – consists of fixed annuities, fixed index annuities, registered index-linked 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 –consists of term and universal life insurance products in the United States. The International Life business issued individual and group life insurance in the United Kingdom. On April 8, 2024, Corebridge completed the sale of AIG Life U.K.
•Institutional Markets – consists of SVW products, structured settlement and PRT annuities, GICs and Corporate Markets products that include corporate- and bank-owned life insurance (“COLI-BOLI”), private placement variable universal life and private placement variable annuities 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.
The following tables summarize adjusted pre-tax operating income (loss) from our segments:
See Note 3 to the Condensed Consolidated Financial Statements.
Interest credited to policyholder account balances
847
695
1,647
1,334
Amortization of deferred policy acquisition costs
166
152
330
301
Non-deferrable insurance commissions
102
94
208
184
Advisory fee expenses
33
38
70
73
General operating expenses
113
110
241
226
Total benefits and expenses
1,309
1,122
2,576
2,187
Adjusted pre-tax operating income
$
623
$
621
$
1,177
$
1,243
* Includes advisory fee income from registered investment services, 12b-1 fees (i.e., marketing and distribution fee income), and other asset management fee income.
Individual Retirement Sources of Earnings
The following table presents the sources of earnings of the Individual Retirement segment. We believe providing APTOI using this view is useful for gaining an understanding of our overall results of operations and the significant drivers of our earnings:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Spread income(a)
$
749
$
723
$
1,447
$
1,436
Fee income
303
308
611
615
Policyholder benefits, net of premiums
(4)
(3)
(9)
2
Non-deferrable insurance commissions
(102)
(94)
(208)
(184)
Amortization of DAC and DSI
(177)
(165)
(353)
(327)
General operating expenses
(113)
(110)
(241)
(226)
Other(b)
(33)
(38)
(70)
(73)
Adjusted pre-tax operating income
$
623
$
621
$
1,177
$
1,243
(a)Spread income represents net investment income less interest credited to policyholder account balances, exclusive of amortization of DSI of $11 million and $13 million for the three months ended June 30, 2025 and 2024, respectively, and $23 million and $26 million for the six months ended June 30, 2025 and 2024 respectively.
(b)Other represents advisory fee expenses.
Financial Highlights
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 APTOI Comparison
APTOI increased $2 million, primarily due to:
•higher spread income of $26 million primarily driven by an increase in variable investment income of $48 million due to improved private equity returns and higher yield enhancement income, partially offset by lower base spread income of $22 million primarily due to changes in short-term interest rates.
Partially offset by:
•higher amortization of DAC and DSI of $12 million due to growth in fixed and fixed index annuity business and registered index-linked annuity business; and
•higher non-deferrable insurance commissions of $8 million primarily due to continued growth in the fixed index annuity business.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 APTOI Comparison
APTOI decreased $66 million, primarily due to:
•higher amortization of DAC and DSI of $26 million due to growth in fixed and fixed index annuity and registered index-linked annuity business;
•higher non-deferrable insurance commissions of $24 million primarily due to continued growth in the fixed index annuity; and
•higher general operating expenses of $15 million.
Partially offset by:
•higher spread income of $11 million primarily driven by an increase in variable investment income of $71 million due to improved private equity returns and higher yield enhancement income, partially offset by lower base spread income of $60 million primarily due to changes in short-term interest rates.
AUMA
The following table presents Individual Retirement AUMA by account type:
(in millions)
June 30, 2025
December 31, 2024
Assets under management and administration:
General account
$
117,741
$
111,308
Separate accounts
48,618
48,818
Total assets under management and administration
$
166,359
$
160,126
June 30, 2025 to December 31, 2024 AUMA Comparison
AUMA increased $6.2 billion driven by an increase of $6.4 billion in the general account partially offset by lower separate accounts asset values of $0.2 billion. The general account increased primarily due to positive general account net flows and lower interest rates resulting in unrealized gains from fixed maturities securities. The separate account decreased primarily due to outflows from separate accounts, partially offset by increases in the equity markets.
Spread and Fee Income
The following table presents Individual Retirement spread and fee income:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Spread income:
Base portfolio income
$
1,506
$
1,374
$
2,965
$
2,709
Interest credited to policyholder account balances
(836)
(682)
(1,624)
(1,308)
Base spread income
670
692
1,341
1,401
Variable investment income
79
31
106
35
Total spread income*
$
749
$
723
$
1,447
$
1,436
Fee income:
Policy fees
$
199
$
200
$
397
$
391
Advisory fees and other income
104
108
214
224
Total fee income
$
303
$
308
$
611
$
615
*Excludes amortization of DSI assets of $11 million and $13 million for the three months ended June 30, 2025 and 2024, respectively, and $23 million and $26 million for the six months ended June 30, 2025 and 2024, respectively.
The following table presents Individual Retirement net investment spread:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Individual Retirement base net investment spread:
Base yield*
5.13
%
5.13
%
5.12
%
5.13
%
Cost of funds
(3.14)
(2.86)
(3.11)
(2.78)
Individual Retirement base net investment spread
1.99
%
2.27
%
2.01
%
2.35
%
*Includes returns from base portfolio including accretion and income (loss) from certain other invested assets.
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison and Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
See “Financial Highlights.”
Premiums and Deposits and Net Flows
For Individual Retirement, premiums primarily represent amounts received on life-contingent payout annuities, while deposits represent sales on investment-oriented products.
Net flows for annuity products in Individual Retirement represent premiums and deposits less death, surrender and other withdrawal benefits.
Premiums and Deposits
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Fixed annuities
$
3,216
$
4,132
$
5,215
$
6,744
Fixed index annuities
2,779
2,239
4,815
4,122
Registered index-linked annuities
492
—
755
—
Variable annuities
367
416
770
782
Total
$
6,854
$
6,787
$
11,555
$
11,648
Net Flows
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Fixed annuities
$
1,154
$
2,014
$
1,245
$
1,803
Fixed index annuities
1,584
1,102
2,446
2,027
Registered index-linked annuities
492
—
755
—
Variable annuities
(1,234)
(1,307)
(2,527)
(2,535)
Total
$
1,996
$
1,809
$
1,919
$
1,295
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison
Fixed Annuities Net inflows decreased by $860 million over the prior year, primarily due to lower premiums and deposits of $916 million and higher death benefits of $343 million, partially offset by lower surrenders and withdrawals of $399 million.
Fixed Index AnnuitiesNet inflows increased by $482 million primarily due to higher premiums and deposits of $540 million, partially offset by higher surrenders and withdrawals of $53 million and higher death benefits of $4 million.
Registered Index-Linked Annuities Net inflows of $492 million due to the launch of the registered index-linked annuity in the fourth quarter of 2024.
Variable AnnuitiesNet outflows decreased by $73 million primarily due to lower surrenders and withdrawals of $129 million, partially offset by lower premium and deposits of $49 million and higher death benefits of $7 million.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
Fixed Annuities Net inflows decreased by $558 million over the prior year, primarily due to lower premiums and deposits of $1.5 billion and higher death benefits of $590 million, partially offset by lower surrenders and withdrawals of $1.6 billion.
Fixed Index AnnuitiesNet inflows increased by $419 million primarily due to higher premiums and deposits of $693 million and lower death benefits of $4 million, partially offset by higher surrenders and withdrawals of $277 million.
Registered Index-Linked Annuities Net inflows of $755 million due to the launch of the registered index-linked annuity in the fourth quarter of 2024.
Variable AnnuitiesNet outflows decreased by $8 million primarily due to lower surrenders and withdrawals of $17 million and lower death benefits of $3 million, partially offset by lower premium and deposits of $12 million.
The following table presents Individual Retirement surrender rates:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Fixed annuities
11.2
%
15.3
%
10.8
%
17.8
%
Fixed index annuities
8.5
9.4
8.7
8.7
Registered index-linked annuities
0.2
—
0.2
—
Variable annuities
9.8
10.3
10.1
9.9
The following table presents account values for fixed annuities, fixed index annuities, registered index-linked annuities and variable annuities by surrender charge category:
June 30,
December 31,
2025
2024
(in millions)
Fixed Annuities
Fixed Index
Annuities
Registered Index-Linked Annuities
Variable Annuities
Fixed Annuities
Fixed Index
Annuities
Registered Index-Linked Annuities
Variable Annuities
No surrender charge
$
17,396
$
2,669
$
—
$
30,820
$
18,450
$
2,297
$
—
$
30,795
Greater than 0% - 2%
1,371
4,562
—
7,173
1,102
4,271
—
6,927
Greater than 2% - 4%
2,442
7,723
—
6,722
2,580
6,958
—
6,139
Greater than 4%
32,915
34,714
890
8,636
29,700
32,719
89
9,923
Non-surrenderable(a)
2,434
—
—
1,155
2,437
—
—
1,155
Total account value(b)
$
56,558
$
49,668
$
890
$
54,506
$
54,269
$
46,245
$
89
$
54,939
(a) The non-surrenderable portion of variable annuities relates to funding agreements.
(b) Includes payout Immediate Annuities and funding agreements.
Individual Retirement annuities are typically subject to a three- to ten-year surrender charge period, depending on the product. For fixed annuities, the proportion of account value subject to surrender charge at June 30, 2025 increased compared to December 31, 2024 primarily due to growth in the business. For fixed index annuities, the proportion of account value subject to surrender charge at June 30, 2025 was slightly lower compared to December 31, 2024 due to the aging of the business. The proportion of account value with no surrender charge for variable annuities as of June 30, 2025 was slightly higher compared to December 31, 2024 due to aging of the business.
Interest credited to policyholder account balances
301
300
597
598
Amortization of deferred policy acquisition costs
21
21
43
42
Non-deferrable insurance commissions
30
30
60
59
Advisory fee expenses
30
32
63
65
General operating expenses
93
102
196
208
Total benefits and expenses
477
483
966
973
Adjusted pre-tax operating income
$
182
$
195
$
377
$
395
* Includes advisory fee income from registered investment services, 12b-1 fees (i.e., marketing and distribution fee income), other asset management fee income, and commission-based broker-dealer services.
Group Retirement Sources of Earnings
The following table presents the sources of earnings of the Group Retirement segment. We believe providing APTOI using this view is useful for gaining an understanding of our overall results of operations and the significant drivers of our earnings:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Spread income(a)
$
171
$
191
$
363
$
391
Fee income(b)
190
191
385
381
Policyholder benefits, net of premiums
(2)
2
(3)
4
Non-deferrable insurance commissions
(30)
(30)
(60)
(59)
Amortization of DAC and DSI
(24)
(25)
(49)
(49)
General operating expenses
(93)
(102)
(196)
(208)
Other(c)
(30)
(32)
(63)
(65)
Adjusted pre-tax operating income
$
182
$
195
$
377
$
395
(a)Excludes amortization of DSI assets of $3 million and $4 million for the three months ended June 30, 2025 and 2024, respectively, and $6 million and $7 million for the six months ended June 30, 2025 and 2024, respectively.
(b)Fee income represents policy fee and advisory fee and other income.
(c)Other consists of advisory fee expenses.
Financial Highlights
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 APTOI Comparison
APTOI decreased $13 million, primarily due to:
•lower spread income of $20 million due to lower base spread income of $33 million reflecting lower base portfolio income, partially offset by higher variable investment income of $13 million primarily driven by higher yield enhancement investment income.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 APTOI Comparison
APTOI decreased $18 million, primarily due to:
•lower spread income of $28 million due to lower base spread income of $64 million reflecting lower base portfolio income, partially offset by higher variable investment income of $36 million primarily driven by higher alternative investment income.
Partially offset by:
•lower general operating expenses of $12 million.
AUMA
The following table presents Group Retirement AUMA by product:
(in millions)
June 30, 2025
December 31, 2024
AUMA by asset type:
In-plan spread based
$
21,900
$
22,330
In-plan fee based
59,781
57,961
Total in-plan AUMA(a)
81,681
80,291
Out-of-plan proprietary - General Account
16,880
16,765
Out-of-plan proprietary - Separate Accounts
11,008
11,116
Total out-of-plan proprietary annuities
27,888
27,881
Advisory and brokerage assets
16,780
16,127
Total out-of-plan AUMA(b)
44,668
44,008
Total AUMA
$
126,349
$
124,299
(a)Includes $13.6 billion of AUMA at June 30, 2025 and $13.1 billion of AUMA at December 31, 2024 that is associated with our in-plan investment advisory service that we offer to participants at an additional fee.
(b) Includes $14.0 billion of AUMA at June 30, 2025 and $13.4 billion of AUMA at December 31, 2024 that is associated with our out-of-plan investment advisory service that we offer to participants at an additional fee.
June 30, 2025 to December 31, 2024 AUMA Comparison
In-plan assets increased by $1.4 billion, driven by a $1.8 billion increase of fee based assets due to higher equity markets, partially offset by negative net flows. Out-of-plan assets increased by $660 million, driven by a $653 million increase in advisory and brokerage assets, primarily due to higher equity markets.
Spread and Fee Income
The following table presents Group Retirement spread and fee income:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Spread income:
Base portfolio income
$
445
$
476
$
906
$
970
Interest credited to policyholder account balances
(298)
(296)
(591)
(591)
Base spread income
147
180
315
379
Variable investment income
24
11
48
12
Total spread income*
$
171
$
191
$
363
$
391
Fee income:
Policy fees
$
105
$
108
$
213
$
215
Advisory fees and other income
85
83
172
166
Total fee income
$
190
$
191
$
385
$
381
*Excludes amortization of DSI assets of $3 million and $4 million for the three months ended June 30, 2025 and 2024, respectively, and $6 million and $7 million for the six months ended June 30, 2025 and 2024, respectively.
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Base net investment spread:
Base yield*
4.26
%
4.28
%
4.32
%
4.35
%
Cost of funds
(3.09)
(2.95)
(3.07)
(2.92)
Base net investment spread
1.17
%
1.33
%
1.25
%
1.43
%
*Includes returns from base portfolio, including accretion and income (loss) from certain other invested assets.
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison and Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
See “Financial Highlights.”
Premiums and Deposits and Net Flows
For Group Retirement, premiums primarily represent amounts received on life-contingent payout annuities while deposits represent sales on investment-oriented products.
Net flows for annuity products included in Group Retirement represent premiums and deposits less death, surrender and other withdrawal benefits. Net flows for mutual funds represent deposits less withdrawals. For Group Retirement, client deposits into advisory and brokerage accounts less total client withdrawals from advisory and brokerage accounts are not included in net flows. Net new assets into these products contribute to growth in AUA rather than AUM.
Premiums and Deposits and Net Flows
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
In-plan(a)(b)
$
1,272
$
1,261
$
2,521
$
2,511
Out-of-plan proprietary variable annuity
150
163
328
316
Out-of-plan proprietary fixed and index annuities
554
574
951
1,225
Premiums and deposits(c)
$
1,976
$
1,998
$
3,800
$
4,052
Net Flows
$
(1,833)
$
(1,874)
$
(3,669)
$
(3,765)
(a)In-plan premium and deposits include sales of variable and fixed annuities as well as mutual funds for 403(b), 401(a), 457(b) and 401(k) plans.
(b)Includes inflows related to in-plan mutual funds of $842 million and $790 million for the three months ended June 30, 2025 and 2024, respectively, and $1.6 billion and $1.6 billion for the six months ended June 30, 2025 and 2024, respectively.
(c)Excludes client deposits into advisory and brokerage accounts of $744 million and $783 million for the three months ended June 30, 2025 and 2024, respectively, and $1.5 billion and $1.5 billion for the six months ended June 30, 2025 and 2024, respectively.
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison
Net flows remained negative and improved by $41 million primarily due to a decrease in surrenders and withdrawals of $44 million in both in-plan and out-of-plan annuities.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
Net flows remained negative and improved by $96 million primarily due to a decrease in surrenders and withdrawals of $329 million in both in-plan and out-of-plan annuities, partially offset by a decrease in deposits of $252 million.
Surrenders
The following table presents Group Retirement surrender rates:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Surrender rates
13.2
%
13.1
%
12.9
%
13.4
%
The following table presents account value for Group Retirement annuities by surrender charge category:
June 30,
December 31,
(in millions)
2025
2024
No surrender charge(a)
$
69,152
$
69,208
Greater than 0% - 2%
1,486
1,421
Greater than 2% - 4%
1,345
1,472
Greater than 4%
6,806
6,748
Non-surrenderable
371
263
Total account value(b)(c)
$
79,160
$
79,112
(a)Group Retirement amounts in this category include account values in the general account of approximately $3.6 billion and $3.7 billion at June 30, 2025 and December 31, 2024, respectively, which are subject to 20% percent annual withdrawal limitations at the participant level and account values in the general account of $4.8 billion, and $4.9 billion at June 30, 2025 and December 31, 2024, respectively, which are subject to 20 percent annual withdrawal limitations at the plan level.
(b)Excludes mutual fund assets under administration of $30.9 billion and $29.5 billion at June 30, 2025 and December 31, 2024, respectively.
(c)Includes payout Immediate Annuities and funding agreements.
Group Retirement annuity deposits are typically subject to a five- to seven-year surrender charge period, depending on the product. In addition, for annuity assets held within an employer defined contribution plan, participants can only withdraw funds in certain circumstances without incurring tax penalties (for example, separation from service), regardless of surrender charges. At June 30, 2025, Group Retirement annuity account values with no surrender charge decreased compared to December 31, 2024 primarily due to negative net flows, partially offset by an increase in assets under management driven by higher equity markets.
Life Insurance
Life Insurance Results
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Adjusted Revenues:
Premiums
$
377
$
331
$
717
$
765
Policy fees
366
366
730
734
Net investment income:
Base portfolio income
329
315
661
642
Variable investment income
6
7
10
6
Net investment income
335
322
671
648
Other income
—
1
1
1
Total adjusted revenues
1,078
1,020
2,119
2,148
Benefits and expenses:
Policyholder benefits
650
627
1,286
1,375
Interest credited to policyholder account balances
84
84
164
167
Amortization of deferred policy acquisition costs
84
84
169
178
Non-deferrable insurance commissions
15
16
29
35
Advisory fee expenses
1
1
1
1
General operating expenses
111
113
229
243
Total benefits and expenses
945
925
1,878
1,999
Adjusted pre-tax operating income
$
133
$
95
$
241
$
149
Life Insurance Sources of Earnings
The following table presents the sources of earnings of the Life Insurance segment. We believe providing APTOI using this view is useful for gaining an understanding of our overall results of operations and the significant drivers of our earnings:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Underwriting margin(a)
$
344
$
309
$
669
$
606
General operating expenses
(111)
(113)
(229)
(243)
Non-deferrable insurance commissions
(15)
(16)
(29)
(35)
Amortization of DAC
(84)
(84)
(169)
(178)
Other(b)
(1)
(1)
(1)
(1)
Adjusted pre-tax operating income
$
133
$
95
$
241
$
149
(a)Underwriting margin represents premiums, policy fees, net investment income and other income, less policyholder benefits and interest credited to policyholder account balances.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 APTOI Comparison
Reported APTOI reflects the results of AIG Life U.K. until March 31, 2024.
APTOI increased $92 million, primarily due to:
•favorable domestic underwriting margin of $96 million, driven by higher net investment income and favorable mortality in the current period, and unfavorable one-time reinsurance adjustments in the prior year.
AUMA
The following table presents Life Insurance AUMA:
(in millions)
June 30, 2025
December 31, 2024
Total AUMA
$
26,432
$
26,466
June 30, 2025 to December 31, 2024 AUMA Comparison
AUMA decreased $34 million in the six months ended June 30, 2025 compared to the prior year-end primarily due to interest rate movements.
Underwriting Margin
The following table presents Life Insurance underwriting margin:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Premiums
$
377
$
331
$
717
$
765
Policy fees
366
366
730
734
Net investment income
335
322
671
648
Other income
—
1
1
1
Policyholder benefits
(650)
(627)
(1,286)
(1,375)
Interest credited to policyholder account balances
(84)
(84)
(164)
(167)
Underwriting margin
$
344
$
309
$
669
$
606
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison and Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
See “Financial Highlights.”
Premiums and Deposits
Premiums and Deposits for Life Insurance represent amounts received on life and health policies. Premiums generally represent amounts received on traditional life products, while deposits represent amounts received on universal life products.
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Traditional Life
$
475
$
458
$
934
$
919
Universal Life
393
388
790
781
Total U.S.
868
846
1,724
1,700
International
—
—
—
240
Premiums and deposits
$
868
$
846
$
1,724
$
1,940
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison
Premiums and deposits increased $22 million for the three months ended June 30, 2025 compared to the prior year, primarily due to increased Traditional Life sales.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
Premiums and deposits decreased $216 million for the six months ended June 30, 2025 compared to the prior year, reflecting the sale of AIG Life U.K. on April 8, 2024.
Interest credited to policyholder account balances
243
187
473
356
Amortization of deferred policy acquisition costs
4
3
8
6
Non-deferrable insurance commissions
5
5
10
10
General operating expenses
20
19
42
39
Total benefits and expenses
558
608
1,561
2,828
Adjusted pre-tax operating income
$
173
$
96
$
310
$
208
Institutional Markets Sources of Earnings
The following table presents the sources of earnings of the Institutional Markets segment. We believe providing APTOI using this view is useful for gaining an understanding of our overall results of operations and the significant drivers of our earnings:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Spread income(a)
$
173
$
88
$
305
$
194
Fee income(b)
16
15
31
31
Underwriting margin(c)
13
20
34
38
Non-deferrable insurance commissions
(5)
(5)
(10)
(10)
General operating expenses
(20)
(19)
(42)
(39)
Other
(4)
(3)
(8)
(6)
Adjusted pre-tax operating income
$
173
$
96
$
310
$
208
(a)Represents spread income on GIC, PRT and structured settlement products.
(b)Represents fee income on SVW products.
(c)Represents underwriting margin from Corporate Markets products, including COLI-BOLI, private placement variable universal life insurance and private placement variable annuity products.
Financial Highlights
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 APTOI Comparison
APTOI increased $77 million, primarily due to:
•higher spread income of $85 million driven by $83 million higher variable investment income from private equity investments.
Partially offset by:
•lower underwriting margin of $7 million driven by higher policyholder benefits.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 APTOI Comparison
APTOI increased $102 million, primarily due to:
•higher spread income of $111 million driven by $121 million higher variable investment income from private equity investments.
Partially offset by:
•lower underwriting margin of $4 million driven by $8 million higher policyholder benefits and other activity, partially offset by $6 million higher policy fees.
The following table presents Institutional Markets AUMA:
(in millions)
June 30, 2025
December 31, 2024
SVW (AUA)
$
46,212
$
45,000
GIC, PRT and Structured settlements (AUM)
44,465
40,722
All other (AUM)
7,339
7,390
Total AUMA
$
98,016
$
93,112
June 30, 2025 to December 31, 2024 AUMA Comparison
AUMA increased $4.9 billion, primarily due to premiums and deposits of PRT and GIC products of $3.1 billion, investment performance and other activity of $2.7 billion and net inflows of $0.4 billion from SVW products, partially offset by benefit payments on the GIC, PRT and structured settlement products of $1.3 billion.
Spread Income, Fee Income and Underwriting Margin
The following table presents Institutional Markets spread income, fee income and underwriting margin:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Premiums
$
34
$
175
$
542
$
1,980
Net investment income
617
451
1,168
900
Policyholder benefits
(262)
(378)
(987)
(2,384)
Interest credited to policyholder account balances
(216)
(160)
(418)
(302)
Total spread income(a)
$
173
$
88
$
305
$
194
SVW fees
$
16
$
15
$
31
$
31
Total fee income
$
16
$
15
$
31
$
31
Premiums
$
(9)
$
(8)
$
(17)
$
(17)
Policy fees (excluding SVW)
35
32
70
64
Net investment income
37
38
75
76
Other income
1
1
2
2
Policyholder benefits
(24)
(16)
(41)
(33)
Interest credited to policyholder account balances
(27)
(27)
(55)
(54)
Total underwriting margin(b)
$
13
$
20
$
34
$
38
(a)Represents spread income from GIC, PRT and structured settlement products.
(b)Represents underwriting margin from Corporate Markets products, including COLI-BOLI, private placement variable universal life insurance and private placement variable annuity products.
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison and Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
See “Financial Highlights.”
Premiums and Deposits
The following table presents the Institutional Markets premiums and deposits:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
PRT
$
—
$
127
$
469
$
1,894
GICs
1,024
1,791
2,349
2,391
Other*
111
130
259
349
Premiums and deposits
$
1,135
$
2,048
$
3,077
$
4,634
*Other principally consists of structured settlements and Corporate Markets products.
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 Comparison
Premiums and deposits decreased compared to the prior year period by $913 million, primarily due to lower deposits on new GICs of $767 million and lower premiums on new PRT business of $127 million.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Comparison
Premiums and deposits decreased compared to the prior year period by $1.6 billion, primarily due to lower premiums on new PRT business of $1.4 billion and lower deposits on new GICs of $42 million.
Corporate and Other
Corporate and Other primarily consists of interest expense on financial debt, parent expenses not attributable to other segments, institutional asset management business, which includes managing assets for non-consolidated affiliates, results of our consolidated investment entities, results of our legacy insurance lines ceded to Fortitude Re and intercompany eliminations.
Corporate and Other Results
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2025
2024
2025
2024
Adjusted Revenues:
Premiums(a)
$
18
$
19
$
36
$
38
Net investment income
18
18
34
8
Net realized gains (losses) on real estate investments
(11)
(9)
2
(17)
Other income
6
8
13
31
Total adjusted revenues
31
36
85
60
Benefits and expenses:
Policyholder benefits
—
—
11
—
Non-deferrable insurance commissions
—
1
1
1
General operating expenses:
Corporate and other
56
60
118
126
Asset management(b)
13
15
27
35
Total general operating expenses
69
75
145
161
Interest expense:
Corporate
114
107
239
214
Asset management and other
24
25
45
55
Total interest expense
138
132
284
269
Total benefits and expenses
207
208
441
431
Noncontrolling interest(c)
8
24
1
75
Adjusted pre-tax operating loss before consolidation and eliminations
(168)
(148)
(355)
(296)
Consolidations and eliminations
(1)
—
2
(3)
Adjusted pre-tax operating (loss)
$
(169)
$
(148)
$
(353)
$
(299)
(a)Premiums include an expense allowance associated with Fortitude Re which is entirely offset in general operating expenses – Corporate and Other.
(b)General operating expenses – Asset management primarily represent the costs to manage the investment portfolio for affiliates that are not included in the consolidated financial statements of Corebridge.
(c)Noncontrolling interests represent the third-party or Corebridge affiliated interest in internally managed consolidated investment vehicles and are almost entirely offset within net investment income, net realized gains (losses) and interest expense.
Corporate and Other Sources of Earnings
The following table presents the sources of earnings of the Corporate and Other segment. We believe providing APTOI using this view is useful for gaining an understanding of our overall results of operations and the significant drivers of our earnings:
Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024 APTOI Comparison
Adjusted pre-tax operating loss increased $21 million primarily due to:
•higher losses from Other sources of earnings of $15 million.
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 APTOI Comparison
Adjusted pre-tax operating loss increased $54 million primarily due to:
•higher interest expense of $25 million driven by new debt issuances in the third and fourth quarter of 2024 in anticipation of debt maturities in April and July 2025;
•lower asset management income of $19 million driven by lower income from legacy investments; and
•higher losses from Other sources of earnings of $21 million.
Investments
OVERVIEW
Our investment strategies are tailored to the specific business needs of each operating unit by targeting an asset allocation mix that supports estimated cash flows of our outstanding liabilities and provides diversification from asset class, sector, issuer and geographic perspectives. The primary objectives are generation of investment income, preservation of capital, liquidity management and growth of surplus. The majority of assets backing our insurance liabilities consist of fixed maturity securities, RMBS, CMBS, CLOs, other ABS and fixed maturity securities issued by government-sponsored entities and corporate entities. At June 30, 2025, of $227.4 billion of invested assets supporting our insurance operating companies, approximately 46% were in corporate debt securities. Mortgage-backed securities (“MBS”), ABS and CLOs represent 33% of our fixed income securities, and 99% were investment grade. At December 31, 2024, of $216.4 billion of invested assets supporting our insurance operating companies, approximately 45% were in corporate debt securities. MBS, ABS and CLOs represent 34% of our fixed income securities and 99% were investment grade.
See “Business - Investment Management” in the 2024 Form 10-K for further information, including current and future management of our investment portfolio.
Key Investment Strategies
Investment strategies are assessed at the segment level and involve considerations that include local and general market and economic conditions, duration and cash flow management, risk appetite and volatility constraints, rating agency and regulatory capital considerations, tax, regulatory and legal investment limitations, and, as applicable, environmental, social and governance considerations.
In 2021, we entered into a long-term asset management relationship with Blackstone IM. Blackstone IM initially managed $50 billion of our existing investment portfolio, with that amount to increase to an aggregate of $92.5 billion by the third quarter of 2027.
The investments underlying the original $50 billion mandate with Blackstone IM began to run-off in 2022 and are being reinvested over time. As these assets run-off, we expect Blackstone to reinvest primarily in Blackstone-originated investments across a range of asset classes, including private and structured credit, and commercial and residential real estate securitized and whole loans. Blackstone’s preferred credit and lending strategy is to seek to control all significant components of the underwriting and pricing processes with the goal of facilitating bespoke opportunities with historically strong credit protection and attractive risk-adjusted returns. Blackstone seeks to capture enhanced economics to those available in the traditional fixed income markets by going directly to the borrowers.
We believe that Blackstone’s ability to originate attractive and privately sourced, fixed-income oriented assets, is accretive to our businesses and provides us with an enhanced competitive advantage as we have been able to expand our investment capabilities, access new asset classes and improve our investment yields. We continue to manage asset allocation and portfolio-level risk management decisions with respect to any assets managed by Blackstone, ensuring that we maintain a consistent level of oversight across our entire investment portfolio considering our asset-liability matching needs, risk appetite and capital position.
As of June 30, 2025, Blackstone managed $70.2 billion in book value of assets in our investment portfolio.
Under the investment management agreements with BlackRock and its investment advisory affiliates, as of June 30, 2025, BlackRock managed approximately $89.7 billion in book value of assets in our investment portfolio, consisting of liquid fixed income and certain private placement assets. In addition, liquid fixed income assets associated with the Fortitude Re portfolio were separately transferred to BlackRock for management. The investment management agreements with BlackRock provide us with access to market-leading capabilities, including portfolio management, research and tactical strategies in addition to a larger pool of investment professionals. We believe BlackRock’s scale and fee structure make BlackRock an excellent outsourcing partner for certain asset classes and will allow us to further optimize our investment management operating model while improving overall performance. The investment management agreements contain detailed investment guidelines and reporting requirements.
Some of our key investment strategies are as follows:
•our fundamental strategy across the portfolios is to seek investments with similar characteristics to the associated insurance liabilities to the extent practicable;
•we seek to purchase investments that offer enhanced yield through illiquidity premiums, such as private placements and commercial mortgage and residential loans, which also add portfolio diversification. These assets typically afford credit protections through covenants, ability to customize structures that meet our insurance liability needs and deeper due diligence given information access;
•we seek investments that provide diversification from assets available in local markets. To the extent we purchase these investments, we generally hedge any currency risk using derivatives, which could provide opportunities to earn higher risk-adjusted returns compared to investments in the functional currency;
•we actively manage our assets and liabilities, counterparties and duration. Our liquidity sources are held primarily in the form of cash, short-term investments and publicly traded, investment grade rated fixed maturity securities that can be readily monetized through sales or repurchase agreements. Certain of our subsidiaries are members of the FHLBs in their respective districts, and we borrow from the FHLB utilizing its funding agreement program. Borrowings from FHLBs are used to supplement liquidity or for other uses deemed appropriate by management. This strategy allows us to both diversify our sources of liquidity and reduce the cost of maintaining sufficient liquidity;
•within the United States, investments are generally split between reserve-backing and surplus portfolios:
–insurance liabilities are backed mainly by investment grade fixed maturity securities that meet our duration, risk-return, tax liquidity, credit quality and diversification objectives. We assess asset classes based on their fundamental underlying risk factors, including credit (public and private), commercial real estate and residential real estate, regardless of whether such investments are bonds, loans or structured products; and
–surplus investments seek to enhance portfolio returns and are generally comprised of a mix of fixed maturity investment grade and below investment grade securities and various alternative asset classes, including private equity, real estate equity and hedge funds. Over the past few years, hedge fund investments have been reduced; and
•we also utilize derivatives to manage our asset and liability duration as well as currency exposures.
Asset-Liability Management
Our investment strategy is to invest in assets that generate net investment income to back policyholder benefit and deposit liabilities that result in stable distributable earnings and enhance portfolio value, subject to asset-liability management, capital, liquidity and regulatory constraints.
We use asset-liability management as a primary tool to monitor and manage interest rate and duration risk in our businesses. We maintain a diversified, high quality portfolio of fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans that, to the extent practicable, match the duration characteristics of the liabilities. We seek to diversify the portfolio across asset classes, sectors and issuers to mitigate idiosyncratic portfolio risks. The investment portfolio of each product line is tailored to the specific characteristics of its insurance liabilities, and as a result, duration varies between distinct portfolios. The interest rate environment has a direct impact on the asset liability management profile of the businesses, and changes in the interest rate environment may result in the need to lengthen or shorten the duration of the portfolio. In a rising rate environment, we may shorten the duration of the investment portfolio.
In addition, we seek to enhance surplus portfolio returns through investments in a diversified portfolio of alternative investments. Although these alternative investments are subject to earnings fluctuations, they have historically achieved accumulative returns over time in excess of the fixed maturity portfolio returns.
The following table presents carrying amounts of our total investments:
(in millions)
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
June 30, 2025
Bonds available-for-sale:
U.S. government and government-sponsored entities
$
1,035
$
243
$
1,278
Obligations of states, municipalities and political subdivisions
3,961
566
4,527
Non-U.S. governments
4,088
214
4,302
Corporate debt
103,470
10,330
113,800
Mortgage-backed, asset-backed and collateralized:
RMBS
15,534
483
16,017
CMBS
9,227
342
9,569
CLO
9,123
126
9,249
ABS
20,343
560
20,903
Total mortgage-backed, asset-backed and collateralized
54,227
1,511
55,738
Total bonds available-for-sale
166,781
12,864
179,645
Other bond securities
439
4,940
5,379
Total fixed maturities
167,220
17,804
185,024
Equity securities
911
—
911
Mortgage and other loans receivable:
Residential mortgages
12,903
—
12,903
Commercial mortgages
33,834
2,961
36,795
Life insurance policy loans
1,399
310
1,709
Commercial loans, other loans and notes receivable
2,801
126
2,927
Total mortgage and other loans receivable(a)
50,937
3,397
54,334
Other invested assets(b)
8,002
1,945
9,947
Short-term investments
3,488
323
3,811
Total(c)
$
230,558
$
23,469
$
254,027
December 31, 2024
Bonds available-for-sale:
U.S. government and government-sponsored entities
$
1,127
$
241
$
1,368
Obligations of states, municipalities and political subdivisions
4,085
576
4,661
Non-U.S. governments
3,670
234
3,904
Corporate debt
95,943
10,535
106,478
Mortgage-backed, asset-backed and collateralized:
RMBS
15,274
510
15,784
CMBS
9,127
450
9,577
CLO
9,985
133
10,118
ABS
18,375
575
18,950
Total mortgage-backed, asset-backed and collateralized
52,761
1,668
54,429
Total bonds available-for-sale
157,586
13,254
170,840
Other bond securities
348
4,914
5,262
Total fixed maturities
157,934
18,168
176,102
Equity securities
56
—
56
Mortgage and other loans receivable:
Residential mortgages
12,671
—
12,671
Commercial mortgages
32,094
3,075
35,169
Life insurance policy loans
1,411
315
1,726
Commercial loans, other loans and notes receivable
3,053
149
3,202
Total mortgage and other loans receivable(a)
49,229
3,539
52,768
Other invested assets(b)
7,800
2,051
9,851
Short-term investments
4,707
274
4,981
Total(c)
$
219,726
$
24,032
$
243,758
(a)Net of total allowance for credit losses for $719 million and $771 million at June 30, 2025 and December 31, 2024, respectively.
(b)Other invested assets, excluding Fortitude Re funds withheld assets, include $6.2 billion and $5.8 billion of private equity funds as of June 30, 2025 and December 31, 2024, respectively, which are generally reported on a one-quarter lag.
(c)Includes the consolidation of approximately $4.8 billion and $4.9 billion of consolidated investment entities at June 30, 2025 and December 31, 2024, respectively.
The following table presents carrying amounts of our total investments for our insurance operating subsidiaries excluding the Fortitude Re funds withheld assets:
(in millions)
June 30, 2025
December 31, 2024
Bonds available-for-sale:
U.S. government and government-sponsored entities
$
1,035
$
1,127
Obligations of states, municipalities and political subdivisions
3,961
4,085
Non-U.S. governments
4,089
3,669
Corporate debt
Public credit
81,952
75,491
Private credit
22,117
20,802
Total corporate debt
104,069
96,293
Mortgage-backed, asset-backed and collateralized:
RMBS
16,060
15,754
CMBS
9,227
9,127
CLO
9,071
9,933
ABS
20,343
18,374
Total mortgage-backed, asset-backed and collateralized
54,701
53,188
Total bonds available-for-sale
167,855
158,362
Other bond securities
404
312
Total fixed maturities
168,259
158,674
Equity securities
911
53
Mortgage and other loans receivable:
Residential mortgages
11,427
11,128
Commercial mortgages
34,373
32,660
Commercial loans, other loans and notes receivable
2,863
3,133
Total mortgage and other loans receivable(a)(b)
48,663
46,921
Other invested assets
Hedge funds
104
132
Private equity(c)
5,938
5,540
Real estate investments
66
313
Other invested assets - All other
331
308
Total other invested assets
6,439
6,293
Short-term investments
3,140
4,428
Total(d)
$
227,412
$
216,369
(a)Does not reflect allowance for credit loss on mortgage loans of $670 million and $710 million at June 30, 2025 and December 31, 2024, respectively.
(b)Does not reflect policy loans of $1.4 billion and $1.4 billion at June 30, 2025 and December 31, 2024, respectively.
(c)Private equity funds are generally reported on a one-quarter lag.
(d)Excludes approximately $4.8 billion and $4.9 billion of consolidated investment entities as well as $2.4 billion and $2.3 billion of eliminations primarily between the consolidated investment entities and the insurance operating companies at June 30, 2025 and December 31, 2024, respectively.
Credit Ratings
At June 30, 2025, nearly all our fixed maturity securities were held by our U.S. entities and 93% of these securities were rated investment grade by one or more of the principal rating agencies.
Moody’s, Standard & Poor’s Financial Services LLC (“S&P”), Fitch or similar foreign rating services rate a significant portion of our foreign entities’ fixed maturity securities portfolio. Rating services are not available for some foreign-issued securities. Our Investments team, with oversight from credit risk management, closely reviews the credit quality of the foreign portfolio’s non-rated fixed maturity securities.
The Securities Valuation Office (“SVO”) of the NAIC evaluates the investments of U.S. insurers for statutory reporting purposes and assigns fixed maturity securities to one of six categories called ‘NAIC Designations.’ In general, NAIC Designations of ‘1,’ highest quality, or ‘2,’ high quality, include fixed maturity securities considered investment grade, while NAIC Designations of ‘3’ through ‘6’ generally include fixed maturity securities referred to as below investment grade. NAIC Designations for non-agency RMBS and CMBS are calculated using third-party modeling results provided through the NAIC. These methodologies result in an improved NAIC Designation for such securities compared to the rating typically assigned by the three major rating agencies. The following tables summarize the ratings distribution of our subsidiaries’ fixed maturity security portfolio by NAIC Designation, and the distribution by composite our credit rating, which is generally based on ratings of the three major rating agencies. As of June 30, 2025 and December 31, 2024, 94% and 95%, respectively, of our fixed maturity security portfolio, excluding Fortitude Re funds withheld assets, were investment grade. The fixed maturity security portfolio of our insurance operating subsidiaries, excluding the Fortitude Re funds withheld assets, was 94% and 95% investment grade as of June 30, 2025 and December 31, 2024, respectively. The remaining below investment grade securities that are not included in consolidated investment entities relate to middle market and high yield bank loans securities.
The following tables present the fixed maturity security portfolio categorized by NAIC Designation, at fair value:
NAIC Designation Excluding Fortitude Re Funds Withheld Assets
(in millions)
1
2
Total Investment Grade
3
4(a)
5(a)
6
Total Below Investment Grade
Total
June 30, 2025
Other fixed maturity securities
$
48,085
$
55,832
$
103,917
$
5,375
$
2,781
$
471
$
101
$
8,728
$
112,645
Mortgage-backed, asset-backed and collateralized
45,194
8,656
53,850
377
178
59
17
631
54,481
Total(b)
$
93,279
$
64,488
$
157,767
$
5,752
$
2,959
$
530
$
118
$
9,359
$
167,126
Fortitude Re funds withheld assets
$
17,804
Total fixed maturities
$
184,930
December 31, 2024
Other fixed maturity securities
$
46,274
$
51,348
$
97,622
$
4,151
$
2,499
$
524
$
73
$
7,247
$
104,869
Mortgage-backed, asset-backed and collateralized
44,725
7,617
52,342
371
172
69
17
629
52,971
Total(b)
$
90,999
$
58,965
$
149,964
$
4,522
$
2,671
$
593
$
90
$
7,876
$
157,840
Fortitude Re funds withheld assets
$
18,168
Total fixed maturities
$
176,008
(a)Includes $0 million and $1 million of consolidated CLOs that are rated NAIC 4 and 5, respectively, as of June 30, 2025 and $2 million and $1 million of NAIC 4 and 5 securities, respectively, as of December 31, 2024. These are assets of consolidated investment entities and do not represent direct investment of Corebridge’s insurance subsidiaries.
(b)Excludes $94 million and $94 million of fixed maturity securities for which no NAIC Designation is available at June 30, 2025 and December 31, 2024, respectively.
The following table presents the fixed maturity security portfolio categorized by NAIC Designation, at fair value, for our insurance operating subsidiaries excluding the Fortitude Re funds withheld assets:
(in millions)
June 30, 2025
December 31, 2024
NAIC 1
$
93,803
$
91,475
NAIC 2
65,095
59,320
NAIC 3
5,755
4,525
NAIC 4
2,959
2,671
NAIC 5 and 6
647
683
Total*
$
168,259
$
158,674
* Excludes approximately $61 million and $61 million of consolidated investment entities and $1.1 billion and $800 million of eliminations primarily related to the consolidated investment entities and the insurance operating subsidiaries at June 30, 2025 and December 31, 2024, respectively.
Composite Corebridge Credit Ratings
With respect to our fixed maturity securities, the credit ratings in the table below and in subsequent tables reflect: (i) a composite of the ratings of the three major rating agencies, or when agency ratings are not available, the rating assigned by the NAIC SVO (100% of total fixed maturity securities), or (ii) our equivalent internal ratings when these investments have not been rated by any of the major rating agencies or the NAIC. The “Non-rated” category in those tables consists of fixed maturity securities that have not been rated by any of the major rating agencies, the NAIC or us.
The following tables present the fixed maturity security portfolio categorized by composite Corebridge credit rating (as described below), at fair value:
Composite Corebridge Credit Rating Excluding Fortitude Re Funds Withheld Assets
(in millions)
AAA/AA/A
BBB
Total Investment Grade
BB
B
CCC and Lower
Total Below Investment Grade (a)(b)
Total
June 30, 2025
Other fixed maturity securities
$
48,852
$
55,499
$
104,351
$
4,918
$
2,647
$
729
$
8,294
$
112,645
Mortgage-backed, asset-backed and collateralized
42,093
9,306
51,399
509
335
2,238
3,082
54,481
Total(c)
$
90,945
$
64,805
$
155,750
$
5,427
$
2,982
$
2,967
$
11,376
$
167,126
Fortitude Re funds withheld assets
$
17,804
Total fixed maturities
$
184,930
December 31, 2024
Other fixed maturity securities
$
46,770
$
50,941
$
97,711
$
4,058
$
2,538
$
562
$
7,158
$
104,869
Mortgage-backed, asset-backed and collateralized
41,521
8,358
49,879
427
371
2,294
3,092
52,971
Total(c)
$
88,291
$
59,299
$
147,590
$
4,485
$
2,909
$
2,856
$
10,250
$
157,840
Fortitude Re funds withheld assets
$
18,168
Total fixed maturities
$
176,008
(a)Includes $2.3 billion and $1.5 billion at June 30, 2025 and December 31, 2024, respectively, of certain RMBS that had experienced deterioration in credit quality since its origination but prior to Corebridge’s acquisition. These securities are currently rated as investment grade under the NAIC SVO framework.
(b)Includes $1 million of consolidated CLOs as of June 30, 2025 and $3 million as of December 31, 2024. These are assets of consolidated investment entities and do not represent direct investment of Corebridge’s insurance subsidiaries.
(c)Excludes $94 million and $94 million of fixed maturity securities for which no NAIC Designation is available at June 30, 2025 and December 31, 2024, respectively.
The following table presents the fixed maturity security portfolio categorized by composite Corebridge credit rating (as described below), at fair value for our insurance operating subsidiaries excluding the Fortitude Re funds withheld assets:
(in millions)
AAA/AA/A
BBB
Total Investment Grade
BB
B
CCC and Lower
Total Below Investment Grade
Total
June 30, 2025
Other fixed maturity securities
$
48,851
$
56,100
$
104,951
$
4,918
$
2,646
$
728
$
8,292
$
113,243
Mortgage-backed, asset-backed and collateralized
42,605
9,321
51,926
514
336
2,240
3,090
55,016
Total fixed maturities*
$
91,456
$
65,421
$
156,877
$
5,432
$
2,982
$
2,968
$
11,382
$
168,259
December 31, 2024
Other fixed maturity securities
$
46,770
$
51,291
$
98,061
$
4,055
$
2,537
$
561
$
7,153
$
105,214
Mortgage-backed, asset-backed and collateralized
41,985
8,375
50,360
433
373
2,294
3,100
53,460
Total fixed maturities*
$
88,755
$
59,666
$
148,421
$
4,488
$
2,910
$
2,855
$
10,253
$
158,674
* Excludes approximately $61 million and $61 million of consolidated investment entities and $1.1 billion and $800 million of eliminations primarily related to the consolidated investment entities and the insurance operating subsidiaries at June 30, 2025 and December 31, 2024, respectively.
For a discussion of credit risks associated with investments, see “Business—Investment Management—Credit Risk” in the 2024 Form 10-K.
The following tables present the composite Corebridge credit ratings of our fixed maturity securities calculated based on their fair value:
*Consists of assets including U.S. government and government sponsored entities, obligations of states, municipalities and political subdivisions, non-U.S. governments, and corporate debt.
The following table presents the fair value of our aggregate credit exposures to non-U.S. governments for our fixed maturity securities:
June 30, 2025
December 31, 2024
(in millions)
Excluding Fortitude Re
Funds Withheld Assets
Fortitude Re
Funds Withheld Assets
Total
Excluding Fortitude Re
Funds Withheld Assets
Fortitude Re
Funds Withheld Assets
Total
Chile
$
449
$
21
$
470
$
425
$
13
$
438
France
409
18
427
262
18
280
Indonesia
301
31
332
322
30
352
Mexico
289
26
315
268
17
285
United Arab Emirates
207
1
208
205
1
206
Saudi Arabia
189
19
208
189
18
207
Qatar
184
35
219
191
41
232
Peru
173
13
186
140
4
144
Colombia
164
25
189
148
25
173
Panama
143
17
160
132
18
150
Other
1,581
78
1,659
1,389
75
1,464
Total*
$
4,089
$
284
$
4,373
$
3,671
$
260
$
3,931
*Includes bonds available-for-sale and other bond securities.
The following table presents our RMBS available-for-sale securities:
June 30, 2025
December 31, 2024
(in millions)
Fair Value
Percent of Total
Fair Value
Percent of Total
Agency RMBS
$
3,909
26
%
$
3,683
25
%
AAA
5
5
AA
3,904
3,678
A
—
—
BBB
—
—
Below investment grade
—
—
Non-rated
—
—
Alt-A RMBS
3,148
20
%
3,349
22
%
AAA
875
975
AA
713
707
A
51
72
BBB
46
59
Below investment grade
1,463
1,536
Non-rated
—
—
Sub-prime RMBS
997
6
%
1,042
7
%
AAA
22
7
AA
56
74
A
82
87
BBB
26
28
Below investment grade
811
846
Non-rated
—
—
Prime non-agency
3,213
21
%
3,272
21
%
AAA
1,858
1,784
AA
808
823
A
344
299
BBB
107
258
Below investment grade
95
107
Non-rated
1
1
Other housing related
4,267
27
%
3,928
25
%
AAA
2,887
2,694
AA
750
628
A
467
397
BBB
151
197
Below investment grade
12
12
Non-rated
—
—
Total RMBS excluding Fortitude Re funds withheld assets
15,534
100
%
15,274
100
%
Total RMBS Fortitude Re funds withheld assets
483
510
Total RMBS*
$
16,017
$
15,784
* Includes $2.3 billion and $1.5 billion at June 30, 2025 and December 31, 2024, respectively, of certain RMBS that had experienced deterioration in credit quality since their origination but prior to Corebridge’s acquisition. These securities are currently rated as investment grade under the NAIC SVO framework.
Our underwriting principles for investing in RMBS, other ABS and CLOs take into consideration the quality of the originator, the manager, the servicer, security credit ratings, underlying characteristics of the mortgages, borrower characteristics and the level of credit enhancement in the transaction.
The following table presents our CMBS available-for-sale securities:
June 30, 2025
December 31, 2024
(in millions)
Fair Value
Percent of Total
Fair Value
Percent of Total
CMBS (traditional)
$
8,193
89
%
$
8,098
88
%
AAA
2,955
3,143
AA
2,865
3,087
A
853
774
BBB
1,087
740
Below investment grade
433
354
Non-rated
—
—
Agency
878
9
%
871
10
%
AAA
3
3
AA
875
868
A
—
—
BBB
—
—
Below investment grade
—
—
Non-rated
—
—
Other
156
2
%
158
2
%
AAA
47
42
AA
4
4
A
17
15
BBB
88
97
Below investment grade
—
—
Non-rated
—
—
Total excluding Fortitude Re funds withheld assets
9,227
100
%
9,127
100
%
Total Fortitude Re funds withheld assets
342
450
Total
$
9,569
$
9,577
The fair value of CMBS holdings increased slightly during the six months ended June 30, 2025. The majority of our investments in CMBS are in tranches that contain substantial protection features through collateral subordination.
The following table presents our ABS/CLO available-for-sale securities by collateral type:
June 30, 2025
December 31, 2024
(dollars in millions)
Fair Value
Percent of Total
Fair Value
Percent of Total
CDO - bank loan (CLO)
$
9,122
31
%
$
9,983
35
%
AAA
1,210
1,435
AA
4,027
4,929
A
2,463
2,548
BBB
1,367
1,008
Below investment grade
2
10
Non-rated
53
53
CDO - other
1
—
%
2
—
%
AAA
—
—
AA
—
—
A
—
—
BBB
—
—
Below investment grade
1
2
Non-rated
—
—
ABS
20,343
69
%
18,375
65
%
AAA
755
593
AA
9,115
8,252
A
3,870
3,407
BBB
6,372
5,919
Below investment grade
231
204
Non-rated
—
—
Total excluding Fortitude Re funds withheld assets
29,466
100
%
28,360
100
%
Total Fortitude Re funds withheld assets
686
708
Total
$
30,152
$
29,068
Unrealized Losses of Fixed Maturity Securities
The following tables show the aging of the unrealized losses on available-for-sale fixed maturity securities, the extent to which the fair value is less than amortized cost or cost, and the number of respective items in each category:
June 30, 2025
Less Than or Equal to
20% of Cost(b)
Greater Than 20% to
50% of Cost(b)
Greater Than
50% of Cost(b)
Total
Aging(a)
(dollars in millions)
Cost(c)
Unrealized Loss(e)
Items(d)
Cost(c)
Unrealized Loss(e)
Items(d)
Cost(c)
Unrealized Loss(e)
Items(d)
Cost(c)
Unrealized Loss(e)
Items(d)
Investment grade bonds
0-6 months
$
15,407
$
501
1,221
$
1,191
$
337
93
$
21
$
11
—
$
16,619
$
849
1,314
7-11 months
10,132
423
896
1,441
473
98
—
—
—
11,573
896
994
12 months or more
51,092
4,626
5,404
27,416
9,012
2,285
273
147
19
78,781
13,785
7,708
Total
76,631
5,550
7,521
30,048
9,822
2,476
294
158
19
106,973
15,530
10,016
Below investment grade bonds
0-6 months
1,266
26
239
23
6
11
2
2
6
1,291
34
256
7-11 months
914
34
161
69
22
10
21
16
1
1,004
72
172
12 months or more
2,723
181
603
511
153
98
12
7
6
3,246
341
707
Total
4,903
241
1,003
603
181
119
35
25
13
5,541
447
1,135
Total bonds
0-6 months
16,673
527
1,460
1,214
343
104
23
13
6
17,910
883
1,570
7-11 months
11,046
457
1,057
1,510
495
108
21
16
1
12,577
968
1,166
12 months or more
53,815
4,807
6,007
27,927
9,165
2,383
285
154
25
82,027
14,126
8,415
Total excluding Fortitude Re funds withheld assets
Total excluding Fortitude Re funds withheld assets
$
92,245
$
6,949
10,069
$
36,469
$
11,349
3,234
$
544
$
302
42
$
129,258
$
18,600
13,345
Total Fortitude Re funds withheld assets
$
15,499
$
3,416
702
Total
$
144,757
$
22,016
14,047
(a)Represents the number of consecutive months that fair value has been less than amortized cost or cost by any amount.
(b)Represents the percentage by which fair value is less than amortized cost or cost at June 30, 2025 and December 31, 2024.
(c)For bonds, represents amortized cost net of allowance.
(d)Item count is by CUSIP by subsidiary.
(e)Includes MTM movement relating to embedded derivatives.
The allowance for credit losses was $10 million and $5 million for investment grade bonds, and $81 million and $114 million for below investment grade bonds as of June 30, 2025 and December 31, 2024, respectively.
Change in Unrealized Gains and Losses on Investments
The change in net unrealized gains and losses on investments for the three and six months ended June 30, 2025, was primarily attributable to a change in the fair value of fixed maturity securities. For the three months ended June 30, 2025, net unrealized gains related to fixed maturity securities were $1.6 billion due to narrowing of credit spreads. For the six months ended June 30, 2025, net unrealized gains were $3.6 billion primarily due to narrowing of credit spreads.
The change in net unrealized gains and losses on investments for the three and six months ended June 30, 2024 was primarily attributable to decreases in the fair value of fixed maturity securities. For the three months ended June 30, 2024, net unrealized losses related to fixed maturity securities increased by $1.2 billion due to higher interest rates. For the six months ended June 30, 2024, net unrealized losses related to fixed maturity securities increased by $2.3 billion due to higher interest rates.
For further discussion of our investment portfolio, see Notes 4 and 5 to the Condensed Consolidated Financial Statements
At June 30, 2025 and December 31, 2024, we had direct commercial mortgage loan exposure of $37.4 billion and $35.8 billion, respectively. At June 30, 2025 and December 31, 2024, we had an allowance for credit losses of $586 million and $626 million, respectively.
The following tables present the commercial mortgage loan exposure by location and class of loan based on amortized cost:
The following tables present debt service coverage ratios and loan-to-value ratios for commercial mortgages:
Debt Service Coverage Ratios(a)
(in millions)
>1.20X
1.00X - 1.20X
<1.00X
Total
June 30, 2025
Loan-to-value ratios(b)
Less than 65%
$
22,220
$
1,900
$
174
$
24,294
65% to 75%
6,792
588
63
7,443
76% to 80%
178
174
—
352
Greater than 80%
1,311
307
666
2,284
Total commercial mortgages excluding Fortitude Re(c)
$
30,501
$
2,969
$
903
$
34,373
Total commercial mortgages including Fortitude Re
$
3,008
Total commercial mortgages
$
37,381
December 31, 2024
Loan-to-value ratios(b)
Less than 65%
$
20,375
$
2,049
$
209
$
22,633
65% to 75%
6,539
593
32
7,164
76% to 80%
552
158
—
710
Greater than 80%
1,036
311
806
2,153
Total commercial mortgages excluding Fortitude Re(c)
$
28,502
$
3,111
$
1,047
$
32,660
Total commercial mortgages including Fortitude Re
$
3,135
Total commercial mortgages
$
35,795
(a)The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X and 1.9X at periods ended June 30, 2025 and December 31, 2024, respectively. The debt service coverage ratios are updated when additional relevant information becomes available.
(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 60% at June 30, 2025 and 60% at December 31, 2024. The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans. We update the valuations of collateral properties by obtaining independent appraisals, generally at least once per year.
At June 30, 2025 and December 31, 2024, we had direct residential mortgage loan exposure of $13.0 billion and $12.7 billion, respectively.
The following tables present credit quality performance indicators for residential mortgages by year of vintage:
June 30, 2025
(in millions)
2025
2024
2023
2022
2021
Prior
Total
FICO:(a)
780 and greater
$
154
$
1,032
$
630
$
646
$
2,203
$
1,438
$
6,103
720 - 779
220
1,832
1,018
564
533
560
4,727
660 - 719
121
668
322
205
143
355
1,814
600 - 659
—
—
13
28
23
155
219
Less than 600
—
—
6
23
13
68
110
Total residential mortgages(b)(c)
$
495
$
3,532
$
1,989
$
1,466
$
2,915
$
2,576
$
12,973
December 31, 2024
(in millions)
2024
2023
2022
2021
2020
Prior
Total
FICO:(a)
780 and greater
$
1,075
$
667
$
690
$
2,258
$
617
$
863
$
6,170
720 - 779
1,647
1,095
579
582
149
440
4,492
660 - 719
609
355
235
150
38
336
1,723
600 - 659
15
12
34
25
10
146
242
Less than 600
3
2
19
12
5
67
108
Total residential mortgages(b)(c)
$
3,349
$
2,131
$
1,557
$
3,027
$
819
$
1,852
$
12,735
(a)Fair Isaac Corporation (“FICO”) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months. FICO scores for residential mortgage investor loans to corporate entities are those of the guarantor at time of purchase. On June 30, 2025 and December 31, 2024 residential loans direct to consumers totaled $8.1 billion and $8.4 billion, respectively.
(b)There are no residential mortgage loans under Fortitude Re funds withheld assets.
(c)Does not include allowance for credit losses.
For additional discussion on credit losses, see Note 5 and for additional discussion on commercial mortgage loans, see Note 6 to the Condensed Consolidated Financial Statements.
Change in allowance for credit losses on fixed maturity securities
(41)
(4)
(45)
(50)
(1)
(51)
Change in allowance for credit losses on loans
14
5
19
(34)
(5)
(39)
Foreign exchange transactions, net of related hedges
(445)
(3)
(448)
55
(1)
54
Index-linked interest credited embedded derivatives, net of related hedges
(248)
—
(248)
(172)
—
(172)
All other derivatives and hedge accounting(b)
(172)
(21)
(193)
18
(34)
(16)
Sale of alternative investments and real estate
(9)
(2)
(11)
11
(3)
8
Other
(30)
—
(30)
(25)
—
(25)
Net realized losses – excluding Fortitude Re funds withheld embedded derivative
(1,694)
(30)
(1,724)
(690)
(93)
(783)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative
—
(251)
(251)
—
36
36
Net realized losses
$
(1,694)
$
(281)
$
(1,975)
$
(690)
$
(57)
$
(747)
Six Months Ended June 30,
2025
2024
(in millions)
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
Excluding Fortitude Re Funds Withheld Assets
Fortitude Re Funds Withheld Assets
Total
Sales of fixed maturity securities
$
(654)
$
(20)
$
(674)
$
(813)
$
(71)
$
(884)
Intent to Sell(a)
(250)
—
(250)
(15)
(32)
(47)
Change in allowance for credit losses on fixed maturity securities
(61)
(12)
(73)
(112)
(7)
(119)
Change in allowance for credit losses on loans
(2)
3
1
(48)
(3)
(51)
Foreign exchange transactions, net of related hedges
(566)
10
(556)
101
—
101
Index-linked interest credited embedded derivatives, net of related hedges
(536)
—
(536)
(82)
—
(82)
All other derivatives and hedge accounting(b)
(416)
16
(400)
123
(140)
(17)
Sale of alternative investments and real estate
3
(4)
(1)
31
(4)
27
Other
(34)
(19)
(53)
(53)
—
(53)
Net realized losses – excluding Fortitude Re funds withheld embedded derivative
(2,516)
(26)
(2,542)
(868)
(257)
(1,125)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative
—
(847)
(847)
—
58
58
Net realized losses
$
(2,516)
$
(873)
$
(3,389)
$
(868)
$
(199)
$
(1,067)
(a)2025 reflects impairment of fixed maturity securities that Corebridge expects to transfer or sell in conjunction with the Reinsurance Agreements discussed in Note 1.
(b)Derivative activity related to hedging certain MRBs is recorded in Change in the fair value of MRBs, net. For additional disclosures about MRBs, see Note 14 to the Condensed Consolidated Financial Statements.
Higher net realized losses excluding Fortitude Re funds withheld assets in the three and six months ended June 30, 2025 compared to same period in the prior period were due primarily to losses on derivatives and foreign exchange transactions in the current period compared to gains on derivatives and foreign exchange transactions in the same period in the prior year.
Index-linked interest credited embedded derivatives, net of related hedges, reflected higher losses in the three and six months ended June 30, 2025 compared to lower losses in the same period in the prior period. Fair value gains or losses in the hedging portfolio are typically not fully offset by increases or decreases in liabilities due to the non-performance or “own credit” risk adjustment used in the valuation of index-linked interest credited embedded derivatives, which are not hedged as part of our economic hedging program, and other risk margins used for valuation that cause the embedded derivatives to be less sensitive to changes in market rates than the hedge portfolio.
Net realized gains (losses) on Fortitude Re funds withheld assets primarily reflect changes in the valuation of the modified coinsurance and funds withheld assets. Increases in the valuation of these assets result in losses to Corebridge as the appreciation on the assets under those reinsurance arrangements must be transferred to Fortitude Re. Decreases in valuation of the assets result in gains to Corebridge as the depreciation on the assets under those reinsurance agreements must be transferred to Fortitude Re.
For further discussion of our investment portfolio, see Note 5 to the Condensed Consolidated Financial Statements.
Other Invested Assets
We seek to enhance returns through investment in a diversified portfolio of alternative asset classes, including private equity, real estate equity and hedge funds.
The following table presents the carrying value of our other invested assets by type:
June 30, 2025
December 31, 2024
(in millions)
Excluding Fortitude Re
Funds Withheld Assets
Fortitude Re
Funds Withheld Assets
Total
Excluding Fortitude Re
Funds Withheld Assets
Fortitude Re
Funds Withheld Assets
Total
Alternative investments(a)
$
6,300
$
1,820
$
8,120
$
5,936
$
1,893
$
7,829
Investment real estate(b)
1,088
125
1,213
1,268
158
1,426
All other investments(c)
614
—
614
596
—
596
Total
$
8,002
$
1,945
$
9,947
$
7,800
$
2,051
$
9,851
(a)At June 30, 2025, included hedge funds of $180 million and private equity funds of $7.9 billion. At December 31, 2024, included hedge funds of $210 million and private equity funds of $7.6 billion.
(b)Net of accumulated depreciation of $484 million and $528 million as of June 30, 2025 and December 31, 2024, respectively.
(c)Includes Corebridge’s ownership interest in Fortitude Re Bermuda, which is recorded using the measurement alternative for equity securities. Our investment in Fortitude Re Bermuda totaled$156 million and $156 million at June 30, 2025 and December 31, 2024, respectively.
Derivatives and Hedge Accounting
We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with both embedded derivatives and MRBs contained in insurance contract liabilities and fixed maturity securities as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and swaps) are used to economically mitigate risk associated with foreign denominated investments, net capital exposures and foreign currency transactions. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities and economically hedge certain investments. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which may include, among other things, credit default swaps (“CDS”) and purchases of investments with embedded derivatives, such as equity linked notes and convertible bonds.
We designated certain derivatives entered into with related parties as fair value hedges of available-for-sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross-currency swaps designated as hedges of the change in fair value of foreign currency denominated available-for-sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with both third parties and related parties as fair value hedges of fixed rate GICs and commercial mortgage loans attributable to changes in benchmark interest rates.
Credit risk associated with derivative counterparties exists for a derivative contract when that contract has a positive fair value to us. The maximum potential exposure may increase or decrease during the life of the derivative commitments as a function of maturity and market conditions. All derivative transactions must be transacted within counterparty limits.
We utilize various credit enhancements, including guarantees, collateral, credit triggers and margin agreements, to reduce the credit risk related to outstanding financial derivative transactions. We require credit enhancements in connection with specific transactions based on, among other things, the creditworthiness of the counterparties and the transaction size and maturity. Furthermore, we enter into certain agreements that have the benefit of set-off and close-out netting provisions, such as ISDA Master Agreements. These provisions provide that, in the case of an early termination of a transaction, we can set off receivables from a counterparty against payables to the same counterparty arising out of all covered transactions. As a result, where a legally enforceable netting agreement exists, the fair value of the transaction with the counterparty represents the net sum of estimated fair values.
For additional information on embedded derivatives, see Notes 4 and 9 to the Condensed Consolidated Financial Statements.
The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:
June 30, 2025
December 31, 2024
Gross Derivative Assets
Gross Derivative Liabilities
Gross Derivative Assets
Gross Derivative Liabilities
(in millions)
Notional Amount
Fair Value
Notional Amount
Fair Value
Notional Amount
Fair Value
Notional Amount
Fair Value
Derivatives designated as hedging instruments(a)
Interest rate contracts
$
9,619
$
390
$
8,433
$
199
$
2,378
$
217
$
11,853
$
414
Foreign exchange contracts
2,340
232
8,151
417
7,062
558
978
46
Derivatives not designated as hedging instruments(a)
Interest rate contracts
59,346
3,549
53,143
4,268
46,448
2,703
36,575
3,038
Foreign exchange contracts
4,989
520
9,134
457
10,360
713
2,857
222
Equity contracts
68,091
4,664
53,966
2,705
41,040
3,046
24,117
1,546
Credit contracts
6,880
312
1,400
103
—
—
5
—
Other contracts(b)
46,222
14
45
1
45,016
13
45
2
Total derivatives, excluding Fortitude Re funds withheld
$
197,487
$
9,681
$
134,272
$
8,150
$
152,304
$
7,250
$
76,430
$
5,268
Total derivatives, Fortitude Re funds withheld
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total derivatives, gross
$
197,487
$
9,681
$
134,272
$
8,150
$
152,304
$
7,250
$
76,430
$
5,268
Counterparty netting(c)
(7,022)
(7,022)
(4,494)
(4,494)
Cash collateral(d)
(2,069)
(1,000)
(2,563)
(664)
Total derivatives on Condensed Consolidated Balance Sheets(e)
$
590
$
128
$
193
$
110
(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b)Consists primarily of SVWs and contracts with multiple underlying exposures.
(c)Represents netting of derivative exposures covered by a qualifying master netting agreement.
(d)Represents cash collateral posted and received that is eligible for netting.
(e)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was zero at both June 30, 2025 and December 31, 2024. Fair value of liabilities related to bifurcated embedded derivatives was $13.9 billion and $11.8 billion, respectively, at June 30, 2025 and December 31, 2024. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in fixed index annuities and index universal life contracts, which include equity and interest rate components, bonds available-for-sale and the funds withheld arrangement with Fortitude Re. For additional information, see Note 7 to the Condensed Consolidated Financial Statements.
For additional information, see Note 9 to the Condensed Consolidated Financial Statements.
Future Policy Benefits, Policyholder Contract Deposits and Market Risk Benefits
VARIABLE ANNUITY GUARANTEED BENEFITS AND HEDGING RESULTS
The following section provides discussion of our significant reinsurance agreements, variable annuity guaranteed benefits and hedging results regarding our business segments.
Variable Annuity Guaranteed Benefits and Hedging Results
Our Individual Retirement and Group Retirement businesses offer variable annuity products with riders that provide guaranteed benefits. The liabilities are accounted for as MRBs and measured at fair value. The fair value of the MRBs may fluctuate significantly based on market interest rates, equity prices, credit spreads, market volatility, policyholder behavior and other factors.
In addition to risk-mitigating features in our variable annuity product design, we have an economic hedging program designed to manage market risk from GMWBs, including exposures to changes in interest rates, equity prices, credit spreads and volatility. The hedging program includes all in-force GMWB policies and utilizes derivative instruments, including but not limited to equity options, futures contracts and interest rate swap and option contracts, as well as fixed maturity securities.
For additional discussion of market risk management related to these product features, see “Quantitative and Qualitative Disclosures about Market Risk” in the 2024 Form 10-K.
Differences in Valuation of MRBs and Economic Hedge Target
Our variable annuity hedging program utilizes an economic hedge target, which represents an estimate of the underlying economic risks in our GMWB riders. The economic hedge target differs from the GAAP valuation of the MRBs, creating volatility in our net income (loss) primarily due to the following:
•the MRBs include both the GMWB riders and the GMDB riders while the hedge program is targeting the economic risks of just the GMWB rider;
•the hedge program is designed to offset moves in the GMWB economic liability and therefore has a lower sensitivity to equity market changes than the MRBs;
•the economic hedge target includes 100% of the GMWB rider fees in present value calculations;
•the GAAP valuation reflects those fees attributed to the MRBs such that the initial value at contract issue equals zero. Since the MRB includes GMWBs and GMDBs these attributed fees are typically larger than just the GMWB rider fees;
•the economic hedge target uses best estimate actuarial assumptions and excludes explicit risk margins used for GAAP valuation, such as margins for policyholder behavior, mortality and volatility; and
•the economic hedge target excludes our own credit risk changes (NPAs) used in the GAAP valuation, which are recognized in OCI. The GAAP valuation has different sensitivities to movements in interest rates and other market factors, and to changes from actuarial assumption updates, than the economic hedge target.
For additional information on our valuation methodology for MRBs, see Note 4 to the Condensed Consolidated Financial Statements.
The market value of the hedge portfolio compared to the economic hedge target at any point in time may be different and is not expected to be fully offsetting. In addition to the derivatives held in conjunction with the variable annuity hedging program, we generally have cash and invested assets available to cover future claims payable under these guarantees. The primary sources of difference between the change in the fair value of the hedging portfolio and the economic hedge target include:
•basis risk due to the variance between expected and actual fund returns, which may be either positive or negative;
•realized volatility versus implied volatility;
•actual versus expected changes in the hedge target driven by assumptions not subject to hedging, particularly policyholder behavior; and
•risk exposures that we have elected not to explicitly or fully hedge.
The following table presents a reconciliation between the fair value of the GAAP MRBs and the value of our economic hedge target:
June 30,
December 31,
(in millions)
2025
2024
Reconciliation of market risk benefits and economic hedge target:
Market risk benefits liability, net
$
243
$
153
Exclude NPA
(620)
(618)
Market risk benefits liability, excluding NPA
(377)
(465)
Adjustments for risk margins and differences in valuation
444
544
Economic hedge target liability
$
67
$
79
Impact on Pre-tax Income (Loss)
The impact on our pre-tax income (loss) of variable annuity guaranteed benefits and related hedging results includes changes in the fair value of MRBs and changes in the fair value of related derivative hedging instruments, and along with attributed rider fees and net of benefits associated with MRBs are together recognized in Change in the fair value of market risk benefits, net, with the exception of NPA changes, which are recognized in OCI. Changes in the fair value of market risk benefits, net are excluded from APTOI of Individual Retirement and Group Retirement.
The change in the fair value of the MRBs and the change in the value of the hedging portfolio are not expected to be fully offsetting, primarily due to the differences in valuation between the economic hedge target, the GAAP MRBs and the fair value of the hedging portfolio, as discussed above. When corporate credit spreads widen, the change in the NPA spread generally reduces the fair value of the MRBs liabilities, resulting in a gain in AOCI, and when corporate credit spreads tighten, the change in the NPA spread generally increases the fair value of the MRBs liabilities, resulting in a loss in AOCI. In addition to changes driven by credit market-related movements in the NPA spread, the NPA balance also reflects changes in business activity and in the net amount at risk from the underlying guaranteed living benefits.
The decrease in the economic hedge target liability in the six months ended June 30, 2025, was primarily driven by higher equity markets.
The following table presents the impact on pre-tax income (loss) and Other comprehensive income (loss) of Variable Annuity MRBs and Hedging for the Individual Retirement and Group Retirement Segments:
Three Months Ended June 30, 2025
Six Months Ended June 30, 2025
(in millions)
MRB Liability(*)
Hedge Assets
Net
MRB Liability(*)
Hedge Assets
Net
Issuances
$
—
$
—
$
—
$
(5)
$
—
$
(5)
Interest accrual
(1)
(73)
(74)
5
(119)
(114)
Attributed fees
(185)
—
(185)
(380)
—
(380)
Expected claims
18
—
18
34
—
34
Effect of changes in interest rates
31
55
86
(114)
199
85
Effect of changes in interest rate volatility
(6)
(2)
(8)
21
(9)
12
Effect of changes in equity markets
554
(239)
315
381
(111)
270
Effect of changes in equity index volatility
(42)
(3)
(45)
(1)
10
9
Actual outcome different from model expected outcome
(25)
—
(25)
(24)
—
(24)
Effect of changes in future expected policyholder behavior
—
—
—
(1)
—
(1)
Effect of changes in other future expected assumptions
—
—
—
—
—
—
Foreign exchange impact
(1)
—
(1)
(3)
—
(3)
Total impact on balance before other and changes in our own credit risk
343
(262)
81
(87)
(30)
(117)
Other
1
9
10
3
(8)
(5)
Effect of changes in our own credit risk
41
(1)
40
(2)
(12)
(14)
Total income (loss) impact on market risk benefits
385
(254)
131
(86)
(50)
(136)
Less: impact on OCI
41
(3)
38
(2)
9
7
Add: fees net of claims and ceded premiums and benefits
177
—
177
363
—
363
Net impact on pre-tax income (loss)
$
521
$
(251)
$
270
$
279
$
(59)
$
220
Net change in value of economic hedge target and related hedges
Actual outcome different from model expected outcome
(46)
—
(46)
(17)
—
(17)
Effect of changes in future expected policyholder behavior
—
—
—
—
—
—
Effect of changes in other future expected assumptions
(1)
—
(1)
(2)
—
(2)
Foreign exchange impact
2
—
2
4
—
4
Total impact on balance before other and changes in our own credit risk
(7)
(160)
(167)
750
(929)
(179)
Other
(2)
(3)
(5)
(4)
(1)
(5)
Effect of changes in our own credit risk
125
(36)
89
137
(19)
118
Total income (loss) impact on market risk benefits
116
(199)
(83)
883
(949)
(66)
Less: impact on OCI
125
(41)
84
137
(89)
48
Add: fees net of claims and ceded premiums and benefits
153
—
153
321
—
321
Net impact on pre-tax income (loss)
$
144
$
(158)
$
(14)
$
1,067
$
(860)
$
207
Net change in value of economic hedge target and related hedges
Net impact on economic gains (losses)
$
31
$
34
*MRB Liability is partially offset by MRB Assets.
Three Months Ended June 30, 2025
Net impact on pre-tax income of $270 million was primarily driven by increases in equity markets.
On an economic basis, the changes in the fair value of the hedge portfolio were partially offset by the changes in the economic hedge target. In the three months ended June 30, 2025, we had a net mark-to-market gain of approximately $151 million from our hedging activities related to our economic hedge target principally driven by higher equity markets and interest rates.
Six Months Ended June 30, 2025
Net impact on pre-tax Income of $220 million was primarily driven by Increases in equity markets.
On an economic basis, the changes in the fair value of the hedge portfolio were partially offset by the changes in the economic hedge target. In the six months ended June 30, 2025, we had a net mark-to-market gain of approximately $272 million from our hedging activities related to our economic hedge target partially due to increases in equity markets and interest rates.
Three Months Ended June 30, 2024
Net impact on pre-tax loss of $14 million was primarily driven by actual outcomes realizing differently than expected.
On an economic basis, the changes in the fair value of the hedge portfolio were partially offset by the changes in the economic hedge target. In the three months ended June 30, 2024, we had a net mark-to-market gain of approximately $31 million from our hedging activities related to our economic hedge target principally driven by higher interest rates and equity markets.
Six Months Ended June 30, 2024
Net impact on pre-tax income of $207 million was primarily driven by increases in equity markets.
On an economic basis, the changes in the fair value of the hedge portfolio were partially offset by the changes in the economic hedge target. In the six months ended June 30, 2024, we had a net mark-to-market gain of approximately $34 million from our hedging activities related to our economic hedge target principally driven by higher equity markets.
Liquidity is defined as cash and unencumbered assets that can be monetized in a short period of time at a reasonable cost. In addition to the on-balance-sheet liquid assets, liquidity resources include availability under committed bank credit facilities.
Capital refers to the long-term financial resources available to support the operation of our businesses, fund business growth, and cover financial and operational needs that arise from adverse circumstances.
We aim to manage our liquidity and capital resources prudently through a well-defined risk management framework that involves various target operating thresholds, as well as minimum requirements during periods of stress.
We believe that we have sufficient liquidity and capital resources to satisfy future requirements and meet our obligations to policyholders, customers, creditors and debt-holders, including those arising from reasonably foreseeable contingencies or events.
For a discussion regarding risks associated with liquidity and capital, see “Risk Factors—Risks Relating to Our Investment Portfolio, Liquidity, Capital and Credit” in the 2024 Form 10-K.
LIQUIDITY AND CAPITAL RESOURCES OF COREBRIDGE PARENT AND INTERMEDIATE HOLDING COMPANIES
As of June 30, 2025 and December 31, 2024, Corebridge Parent and its non-regulated intermediate holding companies (“Corebridge Hold Cos.”) had $4.3 billion and $4.7 billion, respectively, in liquidity sources. These liquidity sources were primarily held in the form of cash and short-term investments and included a $3.0 billion and $2.5 billion committed revolving credit facility as of June 30, 2025 and December 31, 2024, respectively. Corebridge Hold Cos.’ primary sources of liquidity are dividends, loans and other payments from subsidiaries, sales of businesses and credit facilities. Corebridge Hold Cos.’ primary uses of liquidity are for debt service, capital and liability management, and operating expenses.
Corebridge Parent expects to maintain liquidity that is sufficient to at least cover one year of its expenses. We expect that the Corebridge Hold Cos. may access the debt and equity markets from time to time to meet funding requirements as needed.
We utilize our capital resources to support our businesses, with the majority of capital held by our insurance businesses. Corebridge Hold Cos. intend to manage capital between Corebridge Hold Cos. and our insurance companies through internal, Board-approved policies as well as management standards. Nevertheless, regulatory and other legal restrictions could limit our ability to transfer capital freely, either to or from our subsidiaries.
As of June 30, 2025, Corebridge Parent and certain of our subsidiaries were parties to several letter of credit agreements with various financial institutions which issue letters of credit from time to time in support of our insurance companies. Letters of credit issued in support of our subsidiaries (primarily, insurance companies) totaled $276 million and $226 million at June 30, 2025 and December 31, 2024, respectively.
The following table presents Corebridge Hold Cos.’ liquidity sources:
June 30,
December 31,
(in millions)
2025
2024
Cash and short-term investments
$
1,306
$
2,218
Total Corebridge Hold Cos. liquidity
1,306
2,218
Available capacity under committed, revolving credit facility
3,000
2,500
Total Corebridge Hold Cos. liquidity sources
$
4,306
$
4,718
COREBRIDGE HOLD COS. LIQUIDITY AND CAPITAL RESOURCES HIGHLIGHTS
SOURCES
Liquidity to Corebridge Parent from Subsidiaries
During the three and six months ended June 30, 2025, Corebridge Hold Cos. received $600 million and $1.2 billion in dividends from subsidiaries, respectively.
In March 2025, CRBGLH issued a $250 million promissory note to AGL.
We made interest payments on our debt instruments totaling $172 million and $260 million, respectively, during the three and six months ended June 30, 2025.
Debt Maturity
On April 4, 2025, $1.0 billion aggregate principal amount of Corebridge Parent’s 3.50% Senior Notes matured. Corebridge Parent repaid the aggregate principal and accrued interest at maturity.
Dividends
During the three and six months ended June 30, 2025, Corebridge Parent paid cash dividends totaling $131 million and $264 million, respectively, consisting of a quarterly dividend of $0.24 per share of its common stock.
Repurchase of Common Stock
During the three and six months ended June 30, 2025, Corebridge Parent repurchased approximately 9.9 million and 19.9 million of shares of Corebridge Parent common stock, for an aggregate purchase price of approximately $311 million and $632 million.
For additional information, see Note 17 to the Condensed Consolidated Financial Statements.
Contribution
During the six months ended June 30, 2025, Corebridge Hold Cos. made a capital contribution of $150 million to CRBG Bermuda.
LIQUIDITY AND CAPITAL RESOURCES OF COREBRIDGE INSURANCE SUBSIDIARIES
Insurance Companies
We believe that our insurance companies have sufficient liquidity and capital resources to satisfy reasonably foreseeable future liquidity requirements and meet their obligations, including those arising from reasonably foreseeable contingencies or events, through cash from operations and, to the extent necessary, monetization of invested assets. Our insurance companies’ liquidity resources are primarily held in the form of cash, short-term investments and publicly traded, investment grade-rated fixed maturity securities.
The liquidity of each of our material insurance companies is monitored through various internal liquidity risk measures. The primary sources of liquidity are premiums, deposits, fees, reinsurance recoverables, investment income and maturities. The primary uses of liquidity are paid losses, reinsurance payments, benefit claims, surrenders, withdrawals, interest payments, dividends, expenses, investment purchases and collateral requirements.
Certain of our U.S. insurance companies are members of the FHLBs in their respective districts. Our borrowings from FHLBs are non-puttable and are used to supplement liquidity or for other uses deemed appropriate by management. Our U.S. insurance companies had $5.9 billion which were due to FHLBs in their respective districts at June 30, 2025, under funding agreements which were reported in policyholder contract deposits. These investment contracts do not have mortality or morbidity risk. Proceeds from funding agreements are generally invested in investments intended to generate spread income. In addition, our U.S. insurance companies had no outstanding borrowings in the form of cash advances from FHLBs at June 30, 2025.
Certain of our U.S. insurance companies have securities lending programs that lend securities from their investment portfolios to supplement liquidity or for other uses deemed appropriate by management. Under these programs, these U.S. insurance companies lend securities to financial institutions and receive cash as collateral equal to 102% of the fair value of the loaned securities. Cash collateral received is kept in cash or invested in short-term investments or used for short-term liquidity purposes.
The aggregate amount of securities that a U.S. insurance company can lend under its program at any time is limited to 5% of its general account statutory-basis admitted assets. Our U.S. insurance companies had $2.7 billion and $2.4 billion of securities subject to these agreements at June 30, 2025 and December 31, 2024 and $2.7 billion and $2.2 billion liabilities to borrowers for collateral received at June 30, 2025 and December 31, 2024.
We manage the capital of our Life Fleet Risk-Based Capital (“RBC”) ratio targeting above 400%. AGC serves as an affiliate reinsurance company. The surplus of AGC is comprised predominantly of the statutory surplus of the Life Fleet. Given that AGC has no primary operations outside of this internal reinsurance, we believe that excluding AGC from the Life Fleet RBC ratio calculation presents a more accurate view of the overall capital position of our U.S. operating entities. Our Life Fleet RBC ratio was above our minimum target Life Fleet RBC ratio of 400% as of December 31, 2024.
Payments of dividends to Corebridge Hold Cos. by our U.S. insurance subsidiaries are subject to certain restrictions imposed by laws and regulations of their respective states of domicile. With respect to our domestic insurance subsidiaries, the payment of a dividend may require formal notice to the insurance department of the state in which the particular insurance subsidiary is domiciled, and prior approval of such insurance regulator is required when the amount of the dividend is above certain regulatory thresholds. See “Business — Regulation — U.S. Regulation — State Insurance Regulation” in the 2024 Form 10-K. Bermuda law also restricts the ability of CRBG Bermuda to pay dividends.
To our knowledge, no Corebridge insurance company is currently on any regulatory or similar “watch list” with regard to solvency.
ANALYSIS OF SOURCES AND USES OF CASH
Our primary sources and uses of liquidity are summarized as follows:
Six Months Ended June 30,
(in millions)
2025
2024
Sources:
Operating activities, net
$
116
$
589
Net changes in policyholder account balances
7,780
5,726
Issuance of debt of consolidated investment entities
52
101
Contributions from noncontrolling interests
38
53
Financing other, net
70
—
Issuance of common stock
—
1
Total Sources
8,056
6,470
Uses:
Investing activities, net
(6,545)
(3,964)
Repayments of debt of consolidated investment entities
(105)
(398)
Repayments of short-term debt
(1,000)
—
Distributions to noncontrolling interests
(32)
(31)
Dividends paid on common stock
(264)
(282)
Net change in securities lending and repurchase agreements
(5)
(893)
Repurchase of common stock
(632)
(679)
Financing other, net
—
(198)
Effect of exchange rate changes on cash and restricted cash
(1)
—
Total Uses
(8,584)
(6,445)
Net increase (decrease) in cash and cash equivalents
$
(528)
$
25
Operating Activities
Cash inflows from operating activities primarily include insurance premiums, fees and investment income. Cash outflows from operating activities primarily include benefit payments, general operating expenses and servicing of debt. Operating cash flow will fluctuate based on the timing of premiums received and benefit payments to policyholders, as well as other core business activities.
Investing Activities
Cash inflows from investing activities primarily include sales and maturities of underlying assets, mainly fixed maturities available-for-sale and principal payments on mortgage and other loans. The primary cash outflows for investing activities relate to the purchases of new securities, mainly fixed maturities available-for-sale.
Financing Activities
Cash inflows from financing activities primarily include policyholder deposits on investment-type contracts, issuances of debt and inflows from the settlement of securities lending and repurchase agreements. Cash outflows primarily relate to policyholder withdrawal activity on investment-type contracts, repayments of debt of consolidated investment entities, repayments of short and long-term debt, repurchases of common stock, shareholder dividends, distributions to noncontrolling interests and outflows for the settlement of securities lending and repurchase agreements.
CONTRACTUAL OBLIGATIONS
As of June 30, 2025, there have been no material changes in our contractual obligations from December 31, 2024, a description of which may be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operation —Liquidity and Capital Resources — Contractual Obligations” in the 2024 Form 10-K.
We expect to repay the short-term and long-term debt maturities and interest accrued on these borrowings through cash flows generated from invested assets, future cash flows from operations, and future debt and other financing arrangements.
The following tables provide the rollforward of our total debt outstanding:
(in millions)
Maturity Date(s)
Balance at December 31, 2024
Issuances
Maturities and Repayments
Other Changes
Balance at June 30, 2025
Current portion of long-term debt:*
Senior unsecured notes
2025
$
1,000
$
—
$
(1,000)
$
—
$
—
CRBGLH notes
2025
101
—
—
—
101
Total short-term debt
1,101
—
(1,000)
—
101
Long-term debt issued by Corebridge:
Senior unsecured notes
2027 - 2052
6,750
—
—
—
6,750
Hybrid junior subordinated notes
2052 - 2064
2,350
—
—
—
2,350
Long-term debt issued by Corebridge subsidiaries:
CRBGLH notes
2029
99
—
—
—
99
CRBGLH junior subordinated debentures
2030 - 2046
227
—
—
—
227
Total long-term debt
9,426
—
—
—
9,426
Debt issuance costs
(73)
—
—
2
(71)
Total long-term debt, net of debt issuance costs
9,353
—
—
2
9,355
Total debt, net of issuance costs
$
10,454
$
—
$
(1,000)
$
2
$
9,456
* Represents $1.0 billion of 3.50% senior notes that matured on April 4, 2025 and $101 million of 7.50% CRBGLH notes due July 15, 2025.
SENIOR UNSECURED NOTES
On April 4, 2025, $1.0 billion aggregate principal amount of Corebridge Parent’s 3.50% Senior Notes matured. Corebridge Parent repaid the aggregate principal and accrued interest at maturity.
REVOLVING CREDIT AGREEMENT
On May 12, 2022, Corebridge Parent entered into the Revolving Credit Agreement (the “2022 Revolving Credit Agreement”). At December 31, 2024 there were no loans outstanding under the 2022 Revolving Credit Agreement. On March 26, 2025 the 2022 Revolving Credit Agreement was terminated without penalty.
On March 26, 2025, Corebridge Parent entered into the Revolving Credit Agreement (the “2025 Revolving Credit Agreement”). The 2025 Revolving Credit Agreement replaces the 2022 Revolving Credit Agreement which was scheduled to mature in 2027. The 2025 Revolving Credit Agreement provides for a five year total commitment of $3.0 billion revolving credit facility. Under circumstances described in the 2025 Revolving Credit Agreement, the aggregate commitments may be increased by up to $500 million, for a total commitment under the 2025 Revolving Credit Agreement of $3.5 billion. Loans under the 2025 Revolving Credit Agreement will mature on March 26, 2030. Under the 2025 Revolving Credit Agreement, the applicable rate, commitment fee and letter of credit fee were determined by reference to the credit ratings of Corebridge Parent’s senior, unsecured, long-term indebtedness. Borrowings bear interest at a rate per annum equal to (i) with respect to loans in US Dollars, an alternative base rate plus an applicable margin or the adjusted Term SOFR Rate plus an applicable margin, (ii) with respect to loans in Euros, the adjusted European Union interbank Offer Rate (“EURIBOR”) plus an applicable margin, (iii) with respect to loans in Pounds Sterling, the adjusted Daily Simple Sterling Overnight Index Average (“SONIA”) Rate plus an applicable margin and (iv) with respect to loans in Japanese Yen, the adjusted Tokyo Interbank Offered Rate (“TIBOR”) plus an applicable margin.
For additional information on debt outstanding and revolving credit facilities, see Note 15 to the Consolidated Financial Statements in the 2024 Form 10-K.
Our non-financial debt includes debt of consolidated investment entities and such debt does not represent our contractual obligation and is non-recourse to Corebridge. This non-financial debt includes notes and bonds payables supported by cash and investments held by us and certain of our non-insurance subsidiaries for the repayment of those obligations.
(in millions)
Balance at December 31, 2024
Issuances
Maturities and Repayments
Effect of Foreign Exchange
Other Changes
Balance at June 30, 2025
Debt of consolidated investment entities –
not guaranteed by Corebridge(a)(b)
$
1,938
$
52
$
(105)
$
9
$
(1)
$
1,893
(a)At June 30, 2025, includes debt of consolidated investment entities related to real estate investments of $668 million and other securitization vehicles of $0.9 billion.
(b)In relation to the debt of consolidated investment entities not guaranteed by Corebridge, creditors or beneficial interest holders of VIEs generally only have recourse to the assets and cash flows of the VIEs and do not have recourse to us.
CREDIT RATINGS
Credit ratings estimate a company’s ability to meet its obligations and may directly affect the cost and availability of financing to that company.
The following table presents the credit ratings of Corebridge Parent as of the date of this filing:
Senior Unsecured Long-Term Debt
Hybrid Junior Subordinated Long-Term Debt
Moody’s(a)
S&P(b)
Fitch(c)
Moody’s(a)
S&P(b)
Fitch(c)
Baa2 (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa3 (Stable)
BBB- (Stable)
BBB- (Stable)
(a)Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within the rating categories.
(b)S&P ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.
(c)Fitch ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.
These credit ratings are current opinions of the rating agencies. They may be changed, suspended or withdrawn at any time by the rating agencies because of changes in, or unavailability of, information or based on other circumstances. Ratings may also be withdrawn at our request.
We are party to some agreements that contain “ratings triggers.” Depending on the ratings maintained by one or more rating agencies, these triggers could result in (i) the termination or limitation of credit availability or a requirement for accelerated repayment, (ii) the termination of business contracts or (iii) a requirement to post collateral for the benefit of counterparties.
In the event of a downgrade of our long-term debt ratings or our insurance subsidiaries’ Insurer Financial Strength (“IFS”) ratings, we would be required to post additional collateral under some derivative and other transactions, or certain of the counterparties of such other of our subsidiaries would be permitted to terminate such transactions early.
The actual amount of collateral that we or certain of our subsidiaries would be required to post to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at the time of the downgrade.
INSURER FINANCIAL STRENGTH RATINGS
IFS ratings estimate an insurance company’s ability to pay its obligations under an insurance policy.
The following table presents the ratings of our primary insurance subsidiaries as of the date of this filing:
A.M. Best
S&P
Fitch
Moody’s
American General Life Insurance Company
A
A+
A+
A2
The Variable Annuity Life Insurance Company
A
A+
A+
A2
The United States Life Insurance Company in the City of New York
A
A+
A+
A2
These IFS ratings are current opinions of the rating agencies. They may be changed, suspended or withdrawn at any time by the rating agencies as a result of changes in, or unavailability of, information or based on other circumstances.
OFF-BALANCE SHEET ARRANGEMENTS AND COMMERCIAL COMMITMENTS
As June 30, 2025, there have been no material changes in our off-balance-sheet arrangements and commercial commitments from December 31, 2024, a description of which may be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Liquidity and Capital Resources—Off-Balance Sheet Arrangements and Commercial Commitments” in the 2024 Form 10-K.
The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. On a regular basis, we review estimates and assumptions used in the preparation of financial statements. Actual results may differ from these estimates under different assumptions or conditions. For a detailed discussion of our significant accounting policies and accounting pronouncements, see Note 2 in the 2024 Form 10-K.
The accounting policies that we believe are most dependent on the application of estimates and assumptions, which are critical accounting estimates, are related to the determination of:
•fair value measurements of certain financial assets and liabilities;
•valuation of MRBs related to guaranteed benefit features of variable annuity, fixed annuity and fixed index annuity products;
•valuation of embedded derivative liabilities for fixed index annuity, registered index-linked annuity and index universal life products;
•valuation of future policy benefit liabilities and recognition of remeasurement gains and losses;
•reinsurance assets, including the allowance for credit losses;
•allowance for credit losses primarily on loans and available-for-sale fixed maturity securities; and
•income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset.
These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our business, results of operations, financial condition and liquidity could be materially affected.
For a complete discussion of our critical accounting estimates, see “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Accounting Policies and Pronouncements” in the 2024 Form 10-K.
ADOPTION OF ACCOUNTING PRONOUNCEMENTS
See Note 2 to the Condensed Consolidated Financial Statements for a complete discussion of adoption of accounting pronouncements.
Glossary
For a list of defined terms see the “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Glossary” in our 2024 Form 10-K.
Certain Important Terms
For a list of certain important terms see “Management’s Discussion and Analysis of Financial Condition and Results of Operation— Certain Important Terms” in our 2024 Form 10-K.
Acronyms
For list of acronyms see “Management’s Discussion and Analysis of Financial Condition and Results of Operation— Acronyms” in our 2024 Form 10-K.
ITEM 3 |Quantitative and Qualitative Disclosures about Market Risk
ITEM 3 | Quantitative and Qualitative Disclosures about Market Risk
There have been no material changes to the quantitative and qualitative disclosures about market risk described in “Quantitative and Qualitative Disclosures About Market Risk” in the 2024 Form 10-K.
ITEM 4 | Controls and Procedures
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures. In connection with the preparation of this Quarterly Report on Form 10-Q, an evaluation was carried out by Corebridge management, with the participation of Corebridge’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of June 30, 2025. Based on this evaluation, Corebridge’s Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f)) that have occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
For information regarding certain legal proceedings pending against us, see Note 16 to the Condensed Consolidated Financial Statements.
ITEM 1A | Risk Factors
Except as noted below, there have been no material changes in the Company’s risk factors from those disclosed in "Risk Factors" in our 2024 Form 10-K and “Risk Factors” in our first quarter 2025 Form 10-Q.
Failure to complete all or any portion of the transactions with Corporate Solutions Life Reinsurance Company and Venerable Holdings, Inc. may negatively impact our ongoing business and stock price.
The completion of the previously announced transactions with Corporate Solutions Life Reinsurance Company and Venerable Holdings, Inc. (the “Transactions”) is subject to the satisfaction or waiver of customary closing conditions for certain portions of the Transactions, including the entry into the USL reinsurance agreement and the receipt of required regulatory approvals, without imposing a burdensome condition. As a result, there can be no assurance that all or any portion of the Transactions will be completed as contemplated.
If all or any portion of the Transactions are not completed on a timely basis or at all, our ongoing business may be adversely affected as a result of the time and resources committed to such Transactions that could have been devoted to pursuing other opportunities, as well as possible reputational damage and resulting impact on sales of our annuity products, associated with announcing a material strategic transaction that cannot be consummated. In addition, the price of our common stock may decline to the extent that the current market price reflects a market assumption that the Transactions will be completed on the proposed timeline and that any anticipated benefits will be realized.
In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors discussed in “Risk Factors” in the 2024 Form 10-K.
ITEM 2 | Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information about purchases made by or on behalf of Corebridge Parent or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of Corebridge Parent common stock during the three months ended June 30, 2025:
Period
Total Number of Shares Repurchased
Average Price Paid per Share*
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
04/01/25 through 04/30/25
2,740,000
$
28.06
2,740,000
$
2,312
05/01/25 through 05/31/25
3,020,433
31.98
3,020,433
2,215
06/01/25 through 06/30/25
4,180,400
33.00
4,180,400
4,077
Total
9,940,833
$
31.32
9,940,833
$
4,077
*Excludes excise tax of $3.1 million due to the Inflation Reduction Act of 2022 for the three months ended June 30, 2025.
On May 4, 2023, our Board of Directors authorized a share repurchase program, which has subsequently been expanded. Most recently, on June 23, 2025, our Board of Directors authorized an additional $2.0 billion increase in the share repurchase amount under the share repurchase program. Under this program, Corebridge Parent may, from time to time, purchase shares of Corebridge Parent common stock but is not obligated to purchase any particular number of shares. The authorization for the share repurchase program may be terminated, increased or decreased by the Board of Directors at any time.
Shares may be repurchased from time to time in the open market, through private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. For instance, on August 7, 2024, we purchased an aggregate of approximately $200 million of shares from AIG in a privately negotiated transaction. In addition, certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans, including the share repurchase plan Corebridge Parent adopted on May 8, 2025, which, unless extended expires on August 6, 2025. The timing of any future share repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.
During the three months ended June 30, 2025, Corebridge Parent repurchased approximately 9.9 million shares of Corebridge Parent common stock, par value $0.01 per share, for an aggregate purchase price of $311 million, pursuant to the share repurchase program.
As of June 30, 2025, approximately $4.1 billion remained under the share repurchase program authorizations.
For additional information related to share repurchases see Note 17 to the Condensed Consolidated Financial Statements.
Second Amended and Restated Certificate of Incorporation of Corebridge Financial, Inc., incorporated by reference to Exhibit 3.1 to the Form 8-K filed by Corebridge Financial, Inc. filed on July 9, 2025 (File No.001-41504).
Master Transaction Agreement dated June 25, 2025 by and among American General Life Insurance Company, The United States Life Insurance Company in the City of New York, Corporate Solutions Life Reinsurance Company and Venerable Holdings, Inc. (redacted).
Coinsurance and Modified Coinsurance Agreement, dated as of August 1, 2025, between American General Life Insurance Company and Corporate Solutions Life Reinsurance Company (redacted).
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**
Interactive data files pursuant to Rule 405 of Regulation S-T formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, (ii) the Condensed Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2025 and 2024, (iii) the Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2025 and 2024, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024, (v) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025 and 2024, and (vi) the Notes to the Condensed Consolidated Financial Statements
104*
Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in exhibits 101).
*
Filed herewith.
**
This information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, as amended.
†
Identifies each management contract or compensatory plan or arrangement.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
