CoreBridge Financial will continue to streamline as it separates from American International Group, discontinuing businesses not involved in the record pension market.
Corebridge reported second-quarter net income of $771 million as premiums and deposits grew 42% year-over-year. This result follows a 26% increase in premiums and deposits in the first quarter.
“Second quarter conditions continued to be attractive for spread-based products,” CoreBridge CEO Kevin Hogan said on a conference call with analysts today. “We delivered another strong quarter of new business, particularly in pension risk transfer and fixed index annuities.
Corebridge is the rebranding of AIG’s former employment and retirement division. The Houston-based insurer sold a record $2.3 billion worth of fixed index annuities.
“The conditions remain very favorable for fixed index products and we expect our strong value proposition to clients will continue to drive sales in this environment,” Hogan added.
Following the offering of CoreBridge shares in the second quarter, AIG reduced its ownership to 65.3%. AIG Chairman and CEO Peter Zaffino said on Wednesday’s earnings call that CoreBridge plans to become a fully independent company by the end of 2023.
Like many insurers, Corebridge posted higher investment returns as interest rates continued to rise. Net investment income of $2.7 billion increased 19% compared to the prior year period.
Goodbye Raya
On Thursday, Corebridge announced: Agreed to sell Raya Healthcare For £650m on AXA. The sale is expected to close in the fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions.
Laya, Ireland’s second largest health insurer, is a full-service full-service agency headquartered in Cork, Ireland, serving the Irish health insurance market in life and life insurance, as well as a range of innovative insurance products. We offer medical insurance benefits and services. travel insurance.
Hogan said Laya would not be CoreBridge’s future focus. In addition, AIG has hired advisors to provide alternatives to the UK life insurance business that is part of Corebridge.
“We are focused on the large US life and retirement market,” Hogan said. “The U.S. is the largest and fastest growing market for our strategy and we have key strategic advantages in the U.S., including scale and key macro trends that underpin it.”
In Individual Retirement, premiums and deposits increased $400 million, or 12%, compared to the prior year period. Corebridge said in a news release that growth was “mainly driven” by fixed-index annuity deposits, but was partially offset by declines in fixed and variable annuity deposits.
In addition, Group Retirement increased premiums and deposits by $151 million, or 9%, year over year due to an unplanned increase in fixed annuity deposits, while an unplanned decrease in variable annuities Some were killed off. Deposit and plan acquisition.
Good life-mortality
In life insurance, Corebridge reported a slight increase in premiums and deposits from $1.05 billion to $1.06 billion. Adjusted pre-tax operating income decreased 22% driven by lower variable investment income.
But Hogan said projections for mortality from the pandemic are solid.
“We are very pleased with the portfolio we currently have and the second quarter mortality actually showed some improvement and remains within our pricing expectations,” he said. Stated.
Hogan gave special recognition to the CoreBridge sales team, which generated significant sales during the quarter.
“Corebridge Financial Distributors is our in-house team of experts with strategic and long-term relationships with all of our distribution partners, including banks, broker-dealers, general and independent agents, and independent marketing organizations. said Hogan. “In the second quarter, this team was responsible for paying out more than $9 billion of our premiums and deposits. , which we believe has been the foundation of our success.”
Senior Editor JOrne Hilton has covered business and other topics in daily journalism for over 20 years.John can be reached at [email protected]. Follow him on Twitter @INNJohnH.
© All content copyright 2023 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reproduced without written consent from InsuranceNewsNet.com.
