Corebridge Financial Inc
For the period ended Dec 31, 2023. Filed Feb 15, 2024.
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FY2023 · Filed Feb 15, 2024
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SCHEDULE II
Condensed Financial Information of Registrant
Balance Sheets - Parent Company Only
| Schedule II | ||
|---|---|---|
| December 31, | ||
| (in millions, except per common share data) | 2023 | 2022 |
| Assets: | ||
| Short-term investments | $1,594 | $1,499 |
| Other investments | 197 | 198 |
| Total investments | 1,791 | 1,697 |
| Cash | — | 9 |
| Due from affiliates* | 114 | 42 |
| Current tax receivable | 26 | 292 |
| Deferred income taxes | 323 | 108 |
| Investment in consolidated subsidiaries* | 19,170 | 16,543 |
| Other assets | 162 | 83 |
| Total assets | $21,586 | $18,774 |
| Liabilities: | ||
| Due to affiliate* | $461 | $271 |
| Current tax payable | 198 | — |
| Deferred tax liabilities | — | 10 |
| Short term debt | 250 | 1,500 |
| Long term debt | 8,691 | 7,441 |
| Other liabilities | 220 | 172 |
| Total liabilities | 9,820 | 9,394 |
| Corebridge Shareholders’ equity: | ||
| Common stock | 6 | 6 |
| Treasury stock | (503) | — |
| Additional paid-in capital | 8,149 | 8,030 |
| Retained earnings | 17,572 | 18,207 |
| Accumulated other comprehensive income | (13,458) | (16,863) |
| Total Corebridge Shareholders’ equity | 11,766 | 9,380 |
| Total liabilities and equity | $21,586 | $18,774 |
- Eliminated for the consolidated Corebridge financial statements.
Corebridge | 2023 Form 10-K 276
Condensed Financial Information of Registrant (Continued)
Statements of Income (Loss) and Comprehensive Income (Loss) - Parent Company Only
| Schedule II | |||
|---|---|---|---|
| Years Ended December 31, | |||
| (in millions) | 2023 | 2022 | 2021 |
| Revenues: | |||
| Equity in undistributed net income (loss) of consolidated subsidiaries* | $(743) | $6,897 | $4,392 |
| Dividend income from consolidated subsidiaries* | 2,017 | 1,781 | 1,893 |
| Interest income | 67 | 79 | 365 |
| Net realized gains (losses) | (3) | 4 | 62 |
| Total revenues | 1,338 | 8,761 | 6,712 |
| Expenses: | |||
| Interest expense | 398 | 266 | 18 |
| Net (gain) loss on sale of divested businesses | (620) | — | (2,438) |
| Other expenses | 507 | 507 | 191 |
| Total expenses | 285 | 773 | (2,229) |
| Income from continuing operations before income tax expense (benefit) | 1,053 | 7,988 | 8,941 |
| Income tax expense (benefit) | (51) | (171) | 698 |
| Net income attributable to Corebridge Parent | 1,104 | 8,159 | 8,243 |
| Other comprehensive income (loss) | 3,405 | (25,096) | (4,091) |
| Total comprehensive income (loss) attributable to Corebridge Parent | $4,509 | $(16,937) | $4,152 |
- Eliminated for the consolidated Corebridge financial statements.
Corebridge | 2023 Form 10-K 277
Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows - Parent Company Only
| Schedule II | |||
|---|---|---|---|
| Years Ended December 31, | |||
| (in millions) | 2023 | 2022 | 2021 |
| Net cash provided by (used in) operating activities | $1,532 | $1,149 | $519 |
| Cash flows from investing activities: | |||
| Sales or distributions of: | |||
| Available-for-sale securities | — | 1 | 132 |
| Other invested assets | — | — | 232 |
| Maturities of fixed maturity securities available-for-sale | — | — | 86 |
| Principal payments received on mortgage and other loans receivable | — | — | 61 |
| Purchase of: | |||
| Other invested assets | — | — | (23) |
| Mortgage and other loans receivable issued | — | — | (26) |
| Acquisition of businesses, net of cash and restricted cash acquired | — | (107) | — |
| Sales of divested businesses | 752 | — | — |
| Net change in short-term investments | (95) | (1,034) | 54 |
| Net change in derivative assets and liabilities | (3) | 223 | — |
| Net cash provided by (used in) investing activities | 654 | (917) | 516 |
| Cash flows from financing activities: | |||
| Dividends paid on common stock | (1,722) | (876) | — |
| Issuance of long-term debt | 1,240 | 7,451 | — |
| Issuance of short-term debt | — | 1,500 | — |
| Repayments of short-term debt | (1,250) | (8,300) | — |
| Distributions to AIG | — | — | (1,008) |
| Distributions to Class B shareholder | — | — | (34) |
| Repurchase of common stock | (498) | — | — |
| Other financing | 35 | — | — |
| Net cash used in financing activities | (2,195) | (225) | (1,042) |
| Net increase (decrease) in cash and restricted cash | (9) | 7 | (7) |
| Cash and restricted cash at beginning of year | 9 | 2 | 9 |
| Cash and restricted cash at end of year | $— | $9 | $2 |
| Supplementary disclosure of cash flow information: | |||
| Years ended December 31, | |||
| (in millions) | 2023 | 2022 | 2021 |
| Cash | $— | $9 | $2 |
| Total cash and restricted cash shown in Statements of Cash Flows – | |||
| Corebridge Parent Company Only | $— | $9 | $2 |
| Cash (paid) received during the period for: | |||
| Taxes: | |||
| Income tax | $259 | $116 | $32 |
| Intercompany non-cash financing and investing activities: | |||
| Capital distributions | $— | $— | $12,144 |
| Capital contributions | $— | $— | $403 |
Corebridge | 2023 Form 10-K 278
NOTES TO CONDENSED FINANCIAL INFORMATION OF REGISTRANT
- Basis of Presentation
Corebridge’s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The condensed financial statements of Corebridge Parent (the “Registrant”) should be read in conjunction with the consolidated financial statements of Corebridge and the notes thereto (the “Consolidated Financial Statements”). The accounting policies of the Registrant are consistent with the accounting policies disclosed on the consolidated financial statements as applicable.
The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.
- Debt
Short-term and long-term debt is carried at the principal amount borrowed, including unamortized discounts, and fair value adjustments, when applicable.
The following table lists our total debt outstanding at December 31, 2023 and December 31, 2022. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2023, including fixed and variable rates:
| (in millions) | Range ofInterest Rate(s) | MaturityDate(s) | December 31, 2023 | December 31, 2022 |
|---|---|---|---|---|
| Short-term debt issued or borrowed by Corebridge: | ||||
| Three-Year DDTL Facility | 6.46% | 2024 | 250 | 1,500 |
| Total short-term debt | $250 | $1,500 | ||
| Long-term debt issued by Corebridge: | ||||
| Senior unsecured notes(a) | 3.50% - 6.05% | 2025 - 2052 | $7,750 | $6,500 |
| Hybrid junior subordinated notes | 6.875% | 2052 | 1,000 | 1,000 |
| Total long-term debt | 8,750 | 7,500 | ||
| Debt issuance costs | (59) | (59) | ||
| Total long-term debt, net of debt issuance costs | $8,691 | $7,441 | ||
(a) Interest rates reflect contractual amounts and do not reflect the effective borrowing rate after giving effect to the cash flow hedges.
For further details regarding the Senior unsecured notes and Three-Year DDTL Facility, see Note 17 to the Consolidated Financial Statements.
For further details regarding the Hybrid junior subordinated notes, see Note 17 to the Consolidated Financial Statements.
AFFILIATED NOTE
In November 2021, Corebridge Parent issued an $8.3 billion senior promissory note AIG. We used the net proceeds from the senior unsecured notes, the net proceeds from the hybrid junior subordinated notes and a portion of the borrowing of the Three-Year DDTL Facility, discussed in Note 17 to the Consolidated Financial Statements, to repay the principal balance and accrued interest of this note to AIG. The interest rate per annum was equal to LIBOR plus 100 basis points and accrued semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2022.
INTERCOMPANY LENDING FACILITIES
Corebridge Parent has entered intotwo revolving loan facilities where our participating subsidiaries can, on a several basis, borrow monies from Corebridge Parent subject to the terms and conditions stated therein. Principal amounts borrowed under each of these facilities could be repaid and re-borrowed, in whole or in part, from time to time, without penalty. As of December 31, 2023, there wereno amounts owed under these facilities.
On May 12, 2022, Corebridge Parent entered into the Revolving Credit Agreement (the “Credit Agreement”).
For further details regarding the Revolving credit agreement, see Note 17 to the Consolidated Financial Statements.
Corebridge | 2023 Form 10-K 279
LETTERS OF CREDIT
Effective July 28, 2022, Corebridge Parent replaced AIG as applicant and guarantor ontwo letters of credit totaling £80 million, for the benefit of AIG Life. Effective January 1, 2023, Corebridge Parent replaced this letter of credit with a single letter of credit of £80 million. The letter of credit supports AIG Life’s capital position and will be counted as Tier 2 capital under EU Solvency II regulations as approved by the Prudential Regulation Authority. Effective February 17, 2023, the letter of credit was reduced from £80 million to £26 million, and further reduced to £20 million on September 22, 2023.
CRBG Bermuda had a $250 million letter of credit guaranteed by AIG that is used to support the credit for reinsurance provided by CRBG Bermuda. Effective May 9, 2022, the letter of credit was reduced from $250 million to $175 million, and effective May 12, 2022, Corebridge Parent has replaced AIG as the guarantor. Effective May 25, 2023, the letter of credit was reduced from $175 million to $125 million.
For further details regarding the letters of credits, see Note 17 to the Consolidated Financial Statements.
- Guarantees
Corebridge Parent is the guarantor of a promissory note between AGL and SAFG Capital LLC to fund warehousing the origination of group real estate (“GRE”) transactions.
On August 1, 2023, AIG Parent novated to Corebridge Parent the guarantee of promissory notes issued by CRBGLH to AGL.
Corebridge Parent entered into a general guarantee in favor of each holder of any monetary obligation or liability of Corebridge Markets, LLC, which transacts in various capital markets instruments.
Corebridge Parent entered into a Capital and Liquidity Support Agreement with VALIC Trust Company Inc. for regulatory reasons.
For further details regarding guarantees, see Note 18 to the Consolidated Financial Statements.
Corebridge | 2023 Form 10-K 280
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