third quarter 2026
Filed Nov 2, 2026Corebridge Financial Announces Third Quarter 2026 Results
Adjusted pre-tax operating income increased 4% and operating earnings per common share increased 27%, but premiums and deposits decreased 29% and the large increase in GAAP net income was largely driven by favorable changes in net realized gains, including Fortitude Re funds withheld embedded derivatives and fair value market risk benefits.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available to common shareholdersGAAP | $1.44B | – | – |
| Earnings per common share available to common shareholdersGAAP | $ 3.22 | – | – |
| Weighted average shares outstanding - dilutedGAAP | 447M | – | – |
| Adjusted after-tax operating income available to common shareholdersnon-GAAP | $545M | – | – |
| Operating earnings per common sharenon-GAAP | $ 1.22 | – | 27% |
| Weighted average shares outstanding - operatingnon-GAAP | 447M | – | – |
| Total common shares outstandingother | 440M | – | – |
| Pre-tax incomeGAAP | $2.32B | – | – |
| Adjusted pre-tax operating incomenon-GAAP | $677M | – | 4% |
| Core sources of incomeother | $1.54B | – | 2% |
| Base spread incomeother | $876M | – | – |
| Fee incomeother | $322M | – | – |
| Underwriting margin excluding variable investment incomeother | $347M | – | – |
| Premiums and depositsnon-GAAP | $8.79B | – | 29% decrease |
| Net investment incomeGAAP | $3.27B | – | – |
| Net investment income (APTOI basis)non-GAAP | $3.23B | – | – |
| Base portfolio income - insurance operating businessesother | $3.06B | – | – |
| Variable investment income - insurance operating businessesother | $165M | – | – |
| Return on average equityGAAP | 70.3 % | – | – |
| Adjusted return on average equitynon-GAAP | 12.1 % | – | – |
| Total adjusted revenuesnon-GAAP | $4.50B | – | – |
| Total benefits and expensesnon-GAAP | $3.82B | – | – |
| General operating expensesnon-GAAP | $401M | – | – |
| Interest expensenon-GAAP | $128M | – | – |
| Adjusted book value available to Corebridge common shareholdersnon-GAAP | $18.22B | – | – |
| Adjusted book value per common sharenon-GAAP | $ 41.37 | – | – |
| Book value per common shareGAAP | $ 14.16 | – | – |
| Assets under management and administrationother | more than $380 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Individual RetirementPremiums and deposits decreased $1.1 billion, or 19%, primarily driven by lower fixed index annuity deposits, partially offset by higher RILA deposits. Higher fee income increased core sources of income. Excluding VII and the annual assumption update, APTOI fell 4%, driven by higher amortization of DAC and non-deferrable insurance commissions, partially offset by higher fee income. | Total sources of income: $ 766 million; Core sources of income: $ 729 million; Adjusted pre-tax operating income: $ 466 million | – | Core sources of income increased 2%; adjusted pre-tax operating income increased $15 million, or 3% |
| Group RetirementPremiums and deposits increased $18 million, or 1%, due to higher out-of-plan fixed annuity deposits, partially offset by lower in-plan annuity deposits. Lower base spread income and an $8 million one-time notable item reduced core sources of income. Excluding VII and the notable item, APTOI decreased 12%, driven by lower base spread income and higher expenses, partially offset by higher fee income. | Total sources of income: $ 375 million; Core sources of income: $ 345 million; Adjusted pre-tax operating income: $ 164 million | – | Core sources of income decreased $8 million, or 2%; adjusted pre-tax operating income decreased $21 million, or 11% |
| Life InsurancePremiums and deposits were flat from the prior year quarter. Underwriting margin excluding VII increased primarily because of favorable mortality. Excluding VII and the annual assumption update, APTOI was flat from the prior year quarter as higher underwriting margin was offset by higher general operating expenses. | Underwriting margin: $ 336 million; Adjusted pre-tax operating income: $ 17 million | – | Underwriting margin excluding VII increased 1%; adjusted pre-tax operating income decreased $8 million, or 32% |
| Institutional MarketsPremiums and deposits decreased $2.5 billion, or 59%, primarily due to lower premiums on new PRT business and lower deposits in new GIC issuances. Higher VII drove total sources of income and APTOI. Excluding VII and annual actuarial assumption updates, APTOI increased 5%, primarily due to higher base spread income reflecting growth in the underlying business and higher underwriting margin. | Total sources of income: $ 233 million; Core sources of income: $ 142 million; Adjusted pre-tax operating income: $ 198 million | – | Total sources of income increased 36%; core sources of income increased 7%; adjusted pre-tax operating income increased $64 million, or 48% |
| Corporate and OtherThe APTOI loss increased primarily because of higher other expenses from other sources of earnings and corporate expenses, partially offset by higher asset management income. | Asset management: $ 18 million; Adjusted pre-tax operating loss: $ (168) million | – | Adjusted pre-tax operating loss increased $27 million |
Capital returns
- Returned $295 million to shareholders through $185 million of share repurchases and $110 million of dividends to common shareholders
- Declared dividend of $0.25 per share of common stock on November 2, 2026, payable on December 31, 2026, to shareholders of record at the close of business on December 17, 2026
- Common shares outstanding, end of period: 440.3 million
- Share repurchases: (5.5) million common shares
What drove it
- Favorable changes in net realized gains, including Fortitude Re funds withheld embedded derivatives and fair value market risk benefits, largely drove the variance in net income available to common shareholders.
- The annual actuarial assumption update increased pre-tax income by $2 million in the current year compared to a $167 million decrease in the prior year.
- APTOI increased 4%, while APTOI excluding VII and notable items decreased 9%, driven by lower base spread income and higher expenses, partially offset by increased fee income.
- Core sources of income increased 2%, largely due to higher fee income and underwriting margin, partially offset by lower base spread income.
- Premiums and deposits excluding transactional activity declined 19%, primarily due to lower fixed index annuity sales, partially offset by higher RILA deposits and higher out-of-plan fixed annuity sales.
- The company identified more than $100 million of expense synergies related to the proposed merger with Equitable.
Concerns
- Premiums and deposits decreased 29% from the prior year quarter.
- Institutional Markets premiums and deposits decreased 59% because of lower premiums on new PRT business and lower deposits in new GIC issuances.
- Excluding VII and notable items, APTOI decreased 9% from the same period.
- Group Retirement APTOI decreased 11%, and Life Insurance APTOI decreased 32%.
- Corporate and Other adjusted pre-tax operating loss was $ (168) million, compared with $ (141) million in the prior year quarter.
- The proposed transaction with Equitable remains subject to regulatory approval and faces integration, timing, financing and synergy-realization risks described in the release.
What to watch
- Fixed index annuity deposits, RILA deposits and out-of-plan fixed annuity sales.
- Base spread income and general operating expenses, given the reported decline in APTOI excluding VII and notable items.
- Variable investment income, which supported Institutional Markets total sources of income and APTOI.
- Progress in regulatory approvals, Day 1 readiness efforts and future Board selection for the proposed merger with Equitable.
- Execution against the more than $100 million of identified expense synergies.
- Holding company liquidity, pre-funded debt maturing in April 2027 and the financial leverage ratio.
Balance sheet and cash flow
- Holding company liquidity of $2.2 billion as of September 30, 2026, which includes $750 million of pre-funded debt maturing in April 2027
- Financial leverage ratio of 34.2%, which includes approximately 1.7% of pre-funded debt
- Life Fleet RBC ratio remains above target
- Total Corebridge shareholders' equity: $ 6,729 million
- Total Corebridge shareholders' equity available to common shareholders: $ 6,236 million
Analysis
Corebridge reported a sharp increase in GAAP profitability for the third quarter ended September 30, 2026. Net income available to common shareholders was $ 1,440 million, or $ 3.22 per common share, compared with $ 144 million, or $ 0.27 per common share, in the prior year quarter. The release attributes the variance largely to favorable changes in net realized gains, including Fortitude Re funds withheld embedded derivatives and fair value market risk benefits. The annual actuarial assumption update increased pre-tax income by $2 million in the current year, compared with a $167 million decrease in the prior year quarter.
Management, verbatim
Our third quarter results highlight the strength of our diversified business model, resilient earnings profile and disciplined approach to capital allocation.
Marc Costantini, President and Chief Executive Officer
We delivered the strongest annuity sales of the year, continued to build momentum in advisory and brokerage, and increased operating earnings per share by 27%.
Marc Costantini, President and Chief Executive Officer
Combined with more than $100 million of expense synergies we have already identified, the transaction will create a company with greater scale, a lower unit cost structure, a formidable distribution network and one of the industry's broadest product portfolios.
Marc Costantini, President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP total revenue
- Gross margin
- Operating income
- Operating margin
- GAAP operating expenses
- Income tax rate
- Operating cash flow
- Free cash flow
- Cash balance
- Total debt balance
- Forward financial guidance
- Prior-outlook section for comparison with actual results
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.