Corebridge Financial Achieves $42 Billion in Sales for Record Year 2025
Corebridge Financial recently announced a record-breaking year with $42 billion in sales for 2025. The firm experienced a 4% increase in adjusted earnings per share compared to the previous year and saw a 20 basis point rise in return on average equity. This impressive performance was driven by growth in Institutional Markets and the introduction of the MarketLock registered index-linked annuity (RILA) product.
The company executed what it described as the largest variable annuity reinsurance transaction within the industry. This strategic move effectively reduced legacy liabilities to approximately 1% of its balance sheet. In 2025, Corebridge returned $2.6 billion of capital to shareholders, increased dividends, and allocated most proceeds from the VA reinsurance transaction towards share repurchases, enhancing value for its investors.
Looking forward, Corebridge anticipates earnings per share in 2026 to grow at the lower end of their 10–15% target range. They have reduced their sensitivity to short-term interest rates significantly, with a 25-basis-point reduction in SOFR impacting operating earnings by only $20–25 million. Furthermore, Corebridge plans a $900 million share repurchase during the first half of 2026, focusing on digital and distribution enhancements.
Focus on Strategic Growth
CEO Marc Costantini, in a recent earnings call, emphasized the company's dedication to profitable growth, cash generation, and balance sheet strength. He highlighted their robust distribution network for the MarketLock product, positioning Corebridge among the top 10 providers in all major annuity product categories. Institutional Markets experienced a 24% surge in sales, largely driven by pension risk transfers and guaranteed investment contracts.
CFO Elias Habayeb reported a total capital return of $2.6 billion for 2025, with a payout ratio of 110%, or 75% excluding proceeds from VA reinsurance. Corebridge plans to continue enhancing its digital capabilities and customer experience, projecting a 4% to 5% rise in operating expenses before achieving full benefits. In alternative investments, returns are expected to stabilize near long-term projections, with some initial softening in real estate equity.
Innovation and Future Outlook
Corebridge aims to repurchase approximately $900 million in shares in early 2026 with proceeds from VA reinsurance activities. Management is set to achieve key financial metrics, though earnings growth may be at the lower end of forecasts for the upcoming year. Outgoing CFO Elias Habayeb discussed improved asset-liability management, reducing exposure to short-term rate fluctuations. Corebridge is differentiating its offerings with added benefits, including cryptocurrency exposure.
Corebridge Financial, traded on NYSE under the ticker CRBG, offers financial solutions in retirement, life insurance, and asset management. The company's integrated offerings help individuals and organizations manage risk and enhance long-term savings effectively. Insights are based on the "Corebridge Financial Q4 Earnings Call Highlights" by MarketBeat.