Corebridge Financial (CRBG -2.21%), a major U.S. provider of retirement, life insurance, and institutional financial products, released its earnings for the second quarter on August 4, 2025. The most important news in the release was a notable beat on adjusted (non-GAAP) earnings per share, which reached $1.36 versus an expected $1.14. The quarter also featured a major milestone: completion of the bulk of its variable annuity reinsurance transaction, lowering risk and freeing up capital. Overall, the period reflected strong margin-driven earnings, mixed headline results, and continued efforts to optimize the company's business model.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.36 | $1.14 | $1.13 | 20.4% |
| Revenue (Non-GAAP) | $4.42 billion | $4.89 billion | $4.18 billion | 5.7% |
| Adjusted After-Tax Operating Income | $750 million | $692 million | 8.4% | |
| Adjusted Pre-tax Operating Income | $942 million | N/A | N/A | |
| Premiums and Deposits | $10.8 billion | $11.7 billion | (7.2%) |
Source: Analyst estimates for the quarter provided by FactSet.
Understanding Corebridge Financial's Business
Corebridge operates as one of the largest U.S. retirement and insurance platforms, serving individuals, employers, and institutions. Its main lines of business include individual retirement products like fixed and variable annuities, group retirement plans, life insurance, and solutions for institutional markets. The distribution network spans retirement plan advisors, independent brokers, employer channels, and direct digital offerings, giving the company broad reach across market segments.
Recent strategic focuses have centered on strengthening risk management, optimizing investment returns, and diversifying income streams. The partnership with Blackstone aims to extend access to high-quality fixed-income investments. The company prioritizes product innovation, including new registered index-linked annuities (RILA), and invests in digital automation for both underwriting and customer support.
Quarterly Developments: Results and Drivers
This quarter saw adjusted earnings per share (non-GAAP) reach $1.36, a 20% increase over last year and well ahead of consensus. Adjusted pre-tax operating income climbed 10% to $942 million. the GAAP revenue figure missed analysts' target by 31.8%, reflecting lower net investment income (GAAP) and a slowdown in large transactional activity.
Segment results were mixed. The Individual Retirement business saw premiums and deposits (non-GAAP) rise 1% to $6.85 billion, driven by growth in fixed index annuities and strong demand for the RILA product, which exceeded $1 billion in cumulative sales within nine months of launch. Life insurance premiums and deposits grew 3% year over year. Profitability in the Life Insurance segment surged, with adjusted pre-tax operating income up 40% over the prior year quarter. This was helped by favorable mortality trends and automated underwriting, which supports better risk and price management. Institutional Markets saw a 45% decline in premiums and deposits (non-GAAP) to $1.14 billion, attributed to fewer guaranteed investment contracts and pension risk transfer deals, although variable investment income temporarily lifted segment profit.
One of the most impactful actions was the closing of a major variable annuity reinsurance deal covering approximately 90% of the target value. This transaction, described as transformative by management, helped reduce overall risk and improve earnings stability. In addition, Corebridge returned $442 million to shareholders through a mix of dividends and share buybacks. This was aided by an early retirement initiative that resulted in a one-time cost of $85 million in Q1 2025, but set the stage for longer-term efficiency.
Investment management activity continued, with asset repositioning implemented in the Individual and Group Retirement businesses. The close relationship with Blackstone and BlackRock allows for flexibility in shifting between public and private credit, optimizing both yield and risk. The company clarified that it retains full strategic control over investment direction, despite the involvement of these major investment partners.
The period did see some volatility in financials. The company posted a GAAP net loss of $660 million, reversing a $365 million profit for Q2 2024, due to realized investment losses and the absence of prior year asset sale gains. Premiums and deposits (non-GAAP) fell 7% to $10.8 billion from the prior year quarter, reflective of lower institutional business activity, though management noted that excluding certain large one-time transactions, underlying flows remained stable. Segments like Institutional Markets remain exposed to swings in variable investment income, which can fluctuate from quarter to quarter and is not always repeatable.
The quarterly dividend was maintained at $0.24 per share, in line with a stated payout target of 60–65% of earnings. Management reiterated expectations to grow insurance company dividends by 5–10% in FY2025. The payout ratio for the first half of 2025 stood at 64%.
On the product side, the RILA (registered index-linked annuity) launch stands out as a key example of ongoing innovation. RILA products offer a blend of equity market participation and downside protection for retirement savers. The Individual Retirement segment highlighted "record" sales compared to the previous year's strong quarter.
Looking Ahead: Guidance and Analyst Considerations
Management provided several points of financial outlook. The long-term target for operating earnings per share growth remains 10–15% annually (on a non-GAAP operating basis), though for FY2025, performance is expected to be in the mid-single digits due to the impact of rate changes working through the portfolio. Adjusted return on equity reached 14.3% in Q2 2025, Adjusted return on equity for the quarter was 14.3%, within the company's 12–14% target range for ROE (run rate, Q1 2025). Sensitivity to equity and rate moves continues: a 10% swing in the S&P 500 Index translates to an approximately $85 million change in annual fee income and related expenses over a 12-month period, and every 0.25 percentage point shift in SOFR (a benchmark interest rate) impacts base portfolio income by about two basis points.
Management signaled intentions to continue de-risking the business while targeting organic growth and stable cash returns. Investors may want to track the mix of income sources—especially the reliance on variable investment income, which is less predictable—as well as the pace of product uptake in retirement and life insurance lines. Progress in risk management, capital redeployment, and product innovation are key themes to watch in the remainder of the year.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
