Gold prices steady ahead of Fed decision; weekly weakness noted
HOUSTON - Corebridge Financial, Inc. (NYSE:CRBG), currently valued at $18.28 billion with shares trading at $33.07, announced Thursday it has entered into an agreement with CS Life Re, a subsidiary of Venerable Holdings, to reinsure all variable annuities in its Individual Retirement business, representing $51 billion in account value as of March 31, 2025. According to InvestingPro data, the company maintains a FAIR overall financial health score.
The transaction, valued at $2.8 billion, will generate approximately $2.1 billion in net distributable proceeds after tax for Corebridge. The company plans to use a substantial majority of these proceeds for share repurchases, with the remainder supporting organic growth.
In connection with the deal, Corebridge’s Board of Directors has authorized a $2 billion increase to its share repurchase program.
"This is a transformative transaction that repositions the company by exiting Individual Retirement variable annuities," said Kevin Hogan, President and CEO of Corebridge, in a press release statement.
The transaction includes the reinsurance of $5 billion in General Account assets and $46 billion in Separate Account assets, as well as the sale of a related investment adviser and manager for portfolios offered in Corebridge variable annuity products.
Following the transaction, Corebridge will continue to offer fixed, index and registered index-linked annuity products. The company will also continue manufacturing and distributing variable annuity products outside New York state through a flow arrangement with Venerable, while USL will cease manufacturing new variable annuities in New York prior to closing.
The transaction is expected to increase Corebridge’s Life Fleet RBC ratio by over 50 points before any share repurchases. The company’s adjusted after-tax operating income is expected to decrease by approximately $300 million in 2026, with the impact projected to decrease materially over the following years.
The transaction is expected to close in phases, with the American General Life Insurance Company portion closing in the third quarter and the remaining components in the fourth quarter of 2025, subject to regulatory approvals. With the company’s next earnings report due on July 31, 2025, investors can access comprehensive analysis and additional insights through the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks including Corebridge Financial.
In other recent news, Corebridge Financial reported its first-quarter earnings for 2025, revealing an earnings per share (EPS) of $1.16, which fell short of the forecasted $1.18. The company’s revenue also missed expectations, totaling $4.74 billion against a projected $5.44 billion. Despite these shortfalls, Evercore ISI analyst Thomas Gallagher raised Corebridge Financial’s price target to $37 from $36, maintaining an Outperform rating. The analyst noted adjustments in financial estimates following the company’s earnings report, including a decrease in second-quarter earnings estimates. Furthermore, Corebridge Financial held its 2025 Annual Meeting of Stockholders, where stockholders elected thirteen directors and approved executive compensation for 2024. PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025. Additionally, Rose Marie Glazer resigned from her roles on two board committees but will continue as a director candidate and remain on the Risk Committee.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.