Corebridge Sees Higher Surrenders. But Stronger Sales Too [Q1 Earnings]

— May 9, 2023 —
Published in TOP STORIES
on InsuranceNewsNet.com
Written by John Hilton

Corebridge Financial continues to separate from American International Group, seeing higher fixed annuity surrenders during first-quarter earnings, but also even higher sales.

Surrenders were up 15%, which prompted several questions from analysts on a Tuesday morning call, but is still within Corebridge projections, executives stressed.

The higher interest rates that have been driving our strong retail-based spread products over the last few quarters are, as expected, also leading to higher levels of fixed annuity surrenders. That said, sales growth continues to outpace surrenders in our individual retirement business.

Kevin Hogan, President and CEO, Corebridge Financial

Corebridge is the rebranded former life and retirement unit of AIG. The separation effort began in 2021 and AIG is underwriting a decreasing amount of the business. During its own earnings call Friday, AIG said it has delayed a secondary share sale in the life and retirement business unit due to heightened market volatility fueled by the banking crisis.

AIG had planned the share sale in the first quarter. Corebridge, which listed on the stock market in September 2022, has seen its shares drop by more than 20% since going public.

The Corebridge IPO was one of the largest of 2022 raising $1.7 billion. AIG still controls nearly 78% of Corebridge’s shares, with 10% held by Blackstone.

The separation remains on track, Hogan said, and has cost Corebridge about $230 million to date.

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