Corebridge Financial Inc
For the period ended Sep 30, 2024. Filed Nov 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 5, 2024
CRBG$34.09-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001889539-24-000030
Item 2. |Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0001889539-24-000052
Item 2. |Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 755 previous paragraphs and 782 current paragraphs.
526 unchanged; 117 reworded; 136 added; 105 removed; 7 previous and 3 current paragraphs rearranged.
Tables are not compared: 79 previous and 81 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (136)
Current report
Corebridge | Third Quarter 2024 Form 10-Q 82
Current report
Corebridge | Third Quarter 2024 Form 10-Q 83
Current report
Most of the fixed annuities, fixed index annuities, variable annuity products and universal life insurance products we offer maintain policyholder deposits that are reported as liabilities and classified within either separate account liabilities or policyholder contract deposits. Our products and riders also impact liabilities for future policyholder benefits and unearned revenues and assets for DAC and DSI. The valuation of these assets and liabilities (other than deposits) is based on differing accounting methods depending on the product, each of which requires numerous assumptions and considerable judgment. The accounting guidance applied in the valuation of these assets and liabilities includes, but is not limited to, the following: (i) traditional life and limited pay insurance products for which actual experience is reflected in the liability and assumptions are reviewed and updated at least annually, if necessary, with the recognition and parenthetical presentation of any resulting re-measurement gain or loss in policyholder benefits (except for discount rate changes) in the income statement; (ii) certain product guarantees for which benefit liabilities are accrued over the life of the contract in proportion to actual and future expected policy assessments; (iii) certain product guarantees reported as market risk benefits or index crediting features accounted for as embedded derivatives which are carried at fair value; and (iv) unearned revenue and assets for DAC, VOBA and DSI which are amortized on a constant level basis over the expected term of the related contracts using assumptions consistent with those used in estimating the related liability for future policy benefits, or any other related balances, for those corresponding contracts, as applicable.
Current report
At least annually, typically in the third quarter, we conduct a comprehensive review of the underlying assumptions within our actuarially determined assets and liabilities. These assumptions include, but are not limited to, policyholder behavior, mortality, expenses, investment returns and policy crediting rates. Changes in assumptions can result in a significant change to the carrying value of product liabilities and assets and, consequently, the impact could be material to earnings in the period of the change.
Current report
For further details of our accounting policies and related judgments pertaining to assumption updates, see “Future Policy Benefits, Policyholder Contract Deposits and Market Risk Benefits and Update of Actuarial Assumptions and Models—Update of Actuarial Assumptions and Models”, herein and “Accounting Policies and Pronouncements—Critical Accounting Estimates—Market Risk Benefits, Valuation of Embedded Derivatives for Fixed Index Annuity and Index Universal Life Products, Guaranteed Benefit Features of Variable Annuity, Fixed Annuity and Fixed Index Annuity Products, and Future Policy Benefits for Life, Accident and Health Insurance Contracts” in the 2023 Form 10-K.
Current report
In October 2024, we announced the launch of Corebridge MarketLock ® Annuity, a registered index-linked annuity (“RILA”) contract.
Current report
•higher interest credited to policyholder account balances of $224 million primarily due to higher sales activity in fixed and fixed index annuities and continued growth in our GIC business.
Current report
•higher interest credited to policyholder account balances of $593 million primarily due to higher sales activity in fixed and fixed index annuities and continued growth in our GIC business.
Current report
•higher net investment income of $1.1 billion primarily driven by higher base portfolio income partially offset by lower variable investment income; and
Current report
•higher net investment income of $378 million primarily driven by higher base portfolio income partially offset by lower variable investment income; and
Current report
•higher interest credited to policyholder account balances of $217 million primarily due to higher sales activity in fixed and fixed index annuities and continued growth in our GIC business.
Current report
•higher net investment income of $908 million primarily driven by higher base portfolio income partially offset by lower variable investment income;
Current report
•higher interest credited to policyholder account balances of $592 million primarily due to higher sales activity in fixed and fixed index annuities and continued growth in our GIC business.
Current report
•higher fee income of $32 million, primarily due to an increase in mortality and expense fees and other fee income due to higher average variable annuity separate account asset values driven by improved equity market returns.
Showing the first 40 of 136 passages. Open the source sections for the rest.
Removed paragraphs (105)
Previous report
Corebridge | Second Quarter 2024 Form 10-Q 81
Previous report
Corebridge | Second Quarter 2024 Form 10-Q 82
Previous report
•lower premiums of $1.9 billion primarily on new pension risk transfer business;
Previous report
•higher interest credited to policyholder account balances of $196 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and higher interest rates on the growing GIC business.
Previous report
•higher net investment income of $503 million primarily driven by higher base portfolio income partially offset by lower variable investment income;
Previous report
•lower premiums of $1.7 billion primarily on new pension risk transfer business; and
Previous report
•higher interest credited to policyholder account balances of $369 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and higher interest rates on the growing GIC business.
Previous report
•higher net investment income of $236 million primarily driven by higher base portfolio income partially offset by lower variable investment income; and
Previous report
•lower premiums of $1.9 billion primarily on new pension risk transfer business; and
Previous report
•higher interest credited to policyholder account balances of $201 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and higher interest rates on the growing GIC business.
Previous report
•higher net investment income of $530 million primarily driven by higher base portfolio income partially offset by lower variable investment income;
Previous report
•lower premiums of $1.7 billion primarily on new pension risk transfer business;and
Previous report
•higher interest credited to policyholder account balances of $375 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and higher interest rates on the growing GIC business.
Showing the first 40 of 105 passages. Open the source sections for the rest.
Reworded paragraphs (117)
Previous wording
This MD&A addresses the consolidated financial condition of Corebridge as of June 30, 2024, compared with December 31, 2023, and its consolidated results of operations for the three and six months ended June 30, 2024 and 2023. In addition to historical data, this discussion contains forward-looking statements about our business operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the“Management’s Discussion and Analysis of Results of Operations and Financial Condition,” the unaudited Condensed Consolidated Financial Statements and the statements under “Cautionary Statements Regarding Forward-Looking Information,” included elsewhere in this Quarterly Report and the “Risk Factors” section in the 2023 Form 10-K.
Current wording
This MD&A addresses the consolidated financial condition of Corebridge as of September 30, 2024, compared with December 31, 2023, and its consolidated results of operations for the three and nine months ended September 30, 2024 and 2023. In addition to historical data, this discussion contains forward-looking statements about our business operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the“Management’s Discussion and Analysis of Results of Operations and Financial Condition,” the unaudited Condensed Consolidated Financial Statements and the statements under “Cautionary Statements Regarding Forward-Looking Information,” included elsewhere in this Quarterly Report and the “Risk Factors” section in the 2023 Form 10-K.
Previous wording
As of June 30, 2024, $25.5 billion of reserves had been ceded to Fortitude Re.
Current wording
As of September 30, 2024, $26.3 billion of reserves had been ceded to Fortitude Re.
Previous wording
In 2021, we entered into a strategic partnership with Blackstone pursuant to which Blackstone acquired a 9.9% position in our common stock and we entered into a long-term asset management relationship with Blackstone IM. As of June 30, 2024, Blackstone managed approximately $64.4 billion in book value of assets in our investment portfolio.
Current wording
In 2021, we entered into a strategic partnership with Blackstone pursuant to which Blackstone acquired a 9.9% position in our common stock and we entered into a long-term asset management relationship with Blackstone IM. As of September 30, 2024, Blackstone managed approximately $67.5 billion in book value of assets in our investment portfolio.
Previous wording
Since April 2022, we entered into investment management agreements with BlackRock and its investment advisory affiliates. As of June 30, 2024, BlackRock managed approximately $84.0 billion in book value of assets in our investment portfolio, consisting of liquid fixed income and certain private placement assets.
Current wording
Since April 2022, we entered into investment management agreements with BlackRock and its investment advisory affiliates. As of September 30, 2024, BlackRock managed approximately $86.3 billion in book value of assets in our investment portfolio, consisting of liquid fixed income and certain private placement assets.
Previous wording
In addition, as part of Corebridge Forward, we aimed to achieve an annual run rate expense reduction of approximately $400 million on a pre-tax basis within 24 months of the IPO. Through June 30, 2024 we have acted upon or contracted the full $400 million of exit run rate savings on a pre-tax basis. Corebridge Forward is expected to have a cumulative cost to achieve of approximately $300 million on a pre-tax basis. As of June 30, 2024, the cost to achieve has been approximately $203 million.
Current wording
In addition, as part of Corebridge Forward, we aimed to achieve an annual run rate expense reduction of approximately $400 million on a pre-tax basis within 24 months of the IPO. Through September 30, 2024 we have acted upon or contracted the full $400 million of exit run rate savings on a pre-tax basis. Corebridge Forward is expected to have a cumulative cost to achieve of approximately $300 million on a pre-tax basis. As of September 30, 2024, the cost to achieve has been approximately $214 million.
Previous wording
Alternative investments include private equity funds which are generally reported on a one-quarter lag. Accordingly, changes in valuations driven by equity market conditions during the second quarter of 2024 may impact the private equity investments in the alternative investments portfolio in the third quarter of 2024.
Current wording
Alternative investments include private equity funds which are generally reported on a one-quarter lag. Accordingly, changes in valuations driven by equity market conditions during the third quarter of 2024 may impact the private equity investments in the alternative investments portfolio in the fourth quarter of 2024.
Previous wording
As of June 30, 2024, increases in key rates have improved yields on new investments, which are now higher than the yield on maturities and redemptions that we are experiencing in our existing portfolios. Furthermore, the impact of interest rate increases is further reflected in our results as these rate increases have also reduced the value of fixed income assets that are held in the variable annuity separate accounts and brokerage and advisory assets, and accordingly, have adversely impacted the fees that are charged on these accounts. We actively manage our exposure to the interest rate environment through portfolio construction and asset-liability management, including spread management strategies for our investment-oriented products and economic hedging of interest rate risk from guarantee features in our variable annuities, but we may not be able to fully mitigate our interest rate risk by matching exposure of our assets relative to our liabilities.
Current wording
As of September 30, 2024, new investments continue to have higher yields than the yield on maturities and redemptions that we are experiencing in our existing portfolios. We actively manage our exposure to the interest rate environment through portfolio construction and asset-liability management, including spread management strategies for our investment-oriented products and economic hedging of interest rate risk from guarantee features in our variable annuities, but we may not be able to fully mitigate our interest rate risk by matching exposure of our assets relative to our liabilities.
Previous wording
The rising rate environment and our partnership with Blackstone have provided a strong tailwind for fixed and fixed index annuity sales, however, higher interest rates have also resulted in an increase in surrenders. Rising interest rates could continue to create the potential for increased sales but could also drive higher surrenders relative to what we have already experienced. Fixed annuities have surrender charge periods, generally in the three-to-seven-year range. Fixed index annuities have surrender charge periods, generally in the five-to-ten-year range, and within our Group Retirement segment, certain of our fixed investment options are subject to other withdrawal restrictions, which may help mitigate increased early surrenders in a rising rate environment. In addition, older contracts that have higher minimum interest rates and continue to be attractive to contract holders have driven better than expected persistency in fixed annuities, although the liabilities for such contracts have continued to decrease over time in amount and as a percentage of the total annuity portfolio. We closely monitor surrenders of fixed annuities as contracts with lower minimum interest rates come out of the surrender charge period.
Current wording
Rising interest rates could create the potential for increased sales but could also drive higher surrenders relative to what we have already experienced. Fixed annuities have surrender charge periods, generally in the three-to-seven-year range. Fixed index annuities have surrender charge periods, generally in the five-to-ten-year range, and within our Group Retirement segment, certain of our fixed investment options are subject to other withdrawal restrictions, which may help mitigate increased early surrenders in a rising rate environment. In addition, older contracts that have higher minimum interest rates and continue to be attractive to contract holders have driven better than expected persistency in fixed annuities, although the liabilities for such contracts have continued to decrease over time in amount and as a percentage of the total annuity portfolio. We closely monitor surrenders of fixed annuities as contracts with lower minimum interest rates come out of the surrender charge period.
Previous wording
Of the aggregate fixed account values of our Individual Retirement and Group Retirement annuity products, 49% and 54% were crediting at the contractual minimum guaranteed interest rate at June 30, 2024 and December 31, 2023, respectively. The percentages of fixed account values of our annuity products that are currently crediting at rates above 1% were 47% and 50% at June 30, 2024 and December 31, 2023, respectively. In the universal life insurance products in our Life Insurance business, 59% and 59% of the account values were crediting at the contractual minimum guaranteed interest rate at June 30, 2024 and December 31, 2023, respectively. These businesses continue to focus on pricing discipline and strategies to manage the minimum guaranteed interest crediting rates offered on new sales in the context of regulatory requirements and competitive positioning.
Current wording
Of the aggregate fixed account values of our Individual Retirement and Group Retirement annuity products, 48% and 54% were crediting at the contractual minimum guaranteed interest rate at September 30, 2024 and December 31, 2023, respectively. The percentages of fixed account values of our annuity products that are currently crediting at rates above 1% were 45% and 50% at September 30, 2024 and December 31, 2023, respectively. In the universal life insurance products in our Life Insurance business, 59% and 59% of the account values were crediting at the contractual minimum guaranteed interest rate at September 30, 2024 and December 31, 2023, respectively. These businesses continue to focus on pricing discipline and strategies to manage the minimum guaranteed interest crediting rates offered on new sales in the context of regulatory requirements and competitive positioning.
Previous wording
In addition, on April 25, 2024, the Department of Labor (“DOL”) published a final rule in the Federal Register updating the definition for when a person is an “investment advice fiduciary” for purposes of transactions with ERISA qualified plans, related plan participants and IRAs. The DOL also published changes with respect to existing prohibited transactions exemptions (“PTEs”) relating to such advice, including PTE 84-24 and PTE 2020-02. Orders staying the rule’s September 23, 2024 effective date were issued by the U.S. District Courts for the Eastern District of Texas and the Northern District of Texas on July 25, 2024 and July 26, 2024, respectively, in connection with separate lawsuits challenging the rule. We are actively monitoring the progress of the litigation while continuing to evaluate potential impact of the DOL rule to our business.
Current wording
In addition, on April 25, 2024, the Department of Labor (“DOL”) published a final rule in the Federal Register updating the definition for when a person is an “investment advice fiduciary” for purposes of transactions with ERISA qualified plans, related plan participants and IRAs. The DOL also published changes with respect to existing prohibited transactions exemptions (“PTEs”) relating to such advice, including PTE 84-24 and PTE 2020-02. Orders staying the rule’s September 23, 2024 effective date were issued by the U.S. District Courts for the Eastern District of Texas and the Northern District of Texas on July 25, 2024 and July 26, 2024, respectively, in connection with separate lawsuits challenging the rule. On September 20, 2024, DOL filed a notice of appeal confirming its intent to appeal these two orders to the United States Court of Appeals for the Fifth Circuit. We are actively monitoring the progress of the litigation while continuing to evaluate potential impact of the DOL rule to our business.
Previous wording
APTOI excludes “Net realized gains (losses)”, except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities or are recognized as embedded derivatives at fair value are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances).
Current wording
APTOI excludes “Net realized gains (losses)”, except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities, or those recognized as embedded derivatives at fair value, are also included in Net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from Net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., Net investment income and Interest credited to policyholder account balances).
Previous wording
Premiums and deposits is a non-GAAP financial measure that includes direct and assumed premiums received and earned on traditional life insurance policies and life-contingent payout annuities, as well as deposits received on universal life insurance, investment-type annuity contracts and GICs. Premiums and deposits are presented net of internal replacements. We believe the measure of premiums and deposits is useful in understanding customer demand for our products, evolving product trends and our sales performance period over period.
Current wording
Premiums and deposits is a non-GAAP financial measure that includes direct and assumed premiums received and earned on traditional life insurance policies and life-contingent payout annuities, as well as deposits received on universal life insurance, investment-type annuity contracts and GICs. We believe the measure of premiums and deposits is useful in understanding customer demand for our products, evolving product trends and our sales performance period over period.
Previous wording
(b)Excludes client deposits into advisory and brokerage accounts of $783 million and $580 million for the three months ended June 30, 2024 and 2023, respectively, and $1.5 billion and $1.1 billion for the six months ended June 30, 2024 and 2023, respectively.
Current wording
(b)Excludes client deposits into advisory and brokerage accounts of $761 million and $656 million for the three months ended September 30, 2024 and 2023, respectively, and $2.3 billion and $1.8 billion for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
(c)Includes inflows related to in-plan mutual funds of $790 million and $720 million for the three months ended June 30, 2024 and 2023, respectively, and $1.6 billion and $1.7 billion for the six months ended June 30, 2024 and 2023, respectively.
Current wording
(c)Includes inflows related to in-plan mutual funds of $770 million and $773 million for the three months ended September 30, 2024 and 2023, respectively, and $2.4 billion and $2.5 billion for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and six months ended June 30, 2024 and 2023. For factors that relate primarily to a specific business, see “— Business Segment Operations.”
Current wording
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and nine months ended September 30, 2024 and 2023. For factors that relate primarily to a specific business, see “— Business Segment Operations.”
Previous wording
We recorded pre-tax income of $456 million in the three months ended June 30, 2024 compared to pre-tax income of $911 million in the three months ended June 30, 2023. The change in pre-tax income was primarily due to:
Current wording
We recorded a pre-tax loss of $1.6 billion in the three months ended September 30, 2024 compared to pre-tax income of $2.5 billion in the three months ended September 30, 2023. The change in pre-tax income was primarily due to:
Previous wording
•higher net realized losses of $427 million primarily driven by higher losses on the Fortitude Re balances;
Current wording
•higher net realized losses of $3.5 billion primarily driven by higher losses on the Fortitude Re balances;
Previous wording
•higher favorable change in the fair value of market risk benefits, net of $278 million primarily driven by the impacts of higher equity market performance compared to the comparable period in the prior year; and
Current wording
•unfavorable change in the fair value of market risk benefits, net of $1.0 billion primarily driven by the impacts of interest rates compared to the comparable period in the prior year; and
Previous wording
•higher net investment income of $274 million primarily driven by higher base portfolio income and higher income related to the Fortitude Re funds withheld assets partially offset by lower variable investment income; and
Current wording
•higher net investment income of $639 million primarily driven by higher base portfolio income, higher variable investment income and higher income related to the Fortitude Re funds withheld assets.
Previous wording
For the three months ended June 30, 2024, there was an income tax expense of $115 million on income from operations, resulting in an effective tax rate on income from operations of 25.2%.
Current wording
For the three months ended September 30, 2024, there was an income tax benefit of $407 million on loss from operations, resulting in an effective tax rate on loss from operations of 25.5%.
Previous wording
Six Months Ended June 30, 2024 to Six Months Ended June 30, 2023 Net Income Comparison
Current wording
Nine Months Ended September 30, 2024 to Nine Months Ended September 30, 2023 Net Income Comparison
Previous wording
We recorded pre-tax income of $1.5 billion in the six months ended June 30, 2024 compared to pre-tax income of $242 million in the six months ended June 30, 2023 .The change in pre-tax income was primarily due to:
Current wording
We recorded a pre-tax loss of $122 million in the nine months ended September 30, 2024 compared to pre-tax income of $2.7 billion in the nine months ended September 30, 2023.The change in pre-tax income was primarily due to:
Previous wording
•lower net realized losses of $711 million primarily driven by lower losses on the Fortitude Re balances;
Current wording
•higher net realized losses of $2.8 billion primarily driven by higher losses on the Fortitude Re balances;
Previous wording
•lower policyholder benefits of $1.8 billion primarily on new pension risk transfer business;
Current wording
•lower premiums of $1.8 billion primarily on new pension risk transfer business;
Previous wording
•unfavorable change in the fair value of market risk benefits, net of $287 million primarily driven by the impacts of lower equity market performance compared to the comparable period in the prior year; and
Current wording
•unfavorable change in the fair value of market risk benefits, net of $743 million primarily driven by the impacts of lower interest rates compared to the comparable period in the prior year; and
Previous wording
For the six months ended June 30, 2024, there was an income tax expense of $304 million on income from operations, resulting in an effective tax rate on income from operations of 20.7%.
Current wording
For the nine months ended September 30, 2024, there was an income tax benefit of $103 million on loss from operations, resulting in an effective tax rate on loss from operations of 84.4%.
Previous wording
•lower income attributable to noncontrolling interest of $61 million.
Current wording
•lower income attributable to noncontrolling interest of $32 million.
Previous wording
$13 million for the three months ended June 30,2024 and 2023, respectively, and $26 million and $27 million for the six months ended June 30, 2024 and 2023 respectively.
Current wording
(a)Spread income represents net investment income less interest credited to policyholder account balances, exclusive of amortization of DSIof$12 million and $14 million for the three months ended September 30,2024 and 2023, respectively, and $38 million and $41 million for the nine months ended September 30, 2024 and 2023 respectively.
Previous wording
•higher spread income of $129 million primarily driven by higher base spread income due to improved base portfolio yields and growth in invested assets driven by higher general account sales.
Current wording
•higher spread income of $57 million primarily driven by an increase in variable investment income of $34 million due to higher alternative income mostly due to improved private equity returns and higher yield enhancement income, and higher base spread income of $23 million due to improved base portfolio yields and growth in invested assets driven by higher general account sales; and
Previous wording
•higher spread income of $39 million primarily driven by higher base spread income due to improved base portfolio yields and growth in invested assets driven by higher general account sales.
Current wording
•higher spread income of $186 million primarily driven by an increase in variable investment income of $34 million due to higher alternative income mostly due to improved private equity returns and higher yield enhancement income, higher base spread income of $152 million due to improved base portfolio yields and growth in invested assets driven by higher general account sales; and
Previous wording
AUMA increased $5.2 billion driven by an increase of $3.9 billion in the general account and higher separate accounts asset values of $1.3 billion. The general account increased primarily due to positive general account net flows. The separate account increased primarily due to increases in the equity markets, partially offset by outflows from separate accounts.
Current wording
AUMA increased $13.6 billion driven by an increase of $11.2 billion in the general account and higher separate accounts asset values of $2.4 billion. The general account increased primarily due to positive general account net flows and lower interest rates resulting in unrealized gains from fixed maturities securities. The separate account increased primarily due to increases in the equity markets, partially offset by outflows from separate accounts.
Previous wording
*Excludes amortization of DSI assets of $13 million and $13 million for the three months ended June 30, 2024 and 2023, respectively,and $26 million and $27 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
*Excludes amortization of DSI assets of $12 million and $14 million for the three months ended September 30, 2024 and 2023, respectively, and $38 million and $41 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Fixed Annuities Net inflows increased by $3.1 billion over the prior year, primarily due to higher premiums and deposits of $2.9 billion due to higher sales and strong customer demand, lower death benefits of $242 million and lower surrenders and withdrawals of $24 million.
Current wording
Fixed Annuities Net inflows increased by $2.0 billion over the prior year, primarily due to higher premiums and deposits of $1.4 billion due to strong customer demand, lower death benefits of $85 million and lower surrenders and withdrawals of $437 million.
Previous wording
Fixed Index Annuities Net inflows decreased by $510 million primarily due to lower premiums and deposits of $78 million, higher surrenders and withdrawals of $402 million and higher death benefits of $28 million.
Current wording
Fixed Index Annuities Net inflows decreased by $373 million primarily due to higher surrenders and withdrawals of $430 million and higher death benefits of $17 million, offset by higher premiums and deposits of $74 million.
Previous wording
Variable Annuities Net outflows increased $452 million primarily due to lower premium and deposits of $44 million, higher surrenders and withdrawals of $398 million and higher death benefits of $11 million.
Current wording
Variable Annuities Net outflows increased $438 million primarily due to higher surrenders and withdrawals of $449 million and higher death benefits of $39 million, offset by higher premium and deposits of $50 million.
Previous wording
Fixed Annuities Net inflows increased by $3.0 billion over the prior year, primarily due to higher premiums and deposits of $3.2 billion due to higher sales and strong customer demand and lower death benefits of $443 million, partially offset by higher surrenders and withdrawals of $663 million.
Current wording
Fixed Annuities Net inflows increased by $5.0 billion over the prior year, primarily due to higher premiums and deposits of $4.7 billion due to strong customer demand and lower death benefits of $528 million, offset by higher surrenders and withdrawals of $226 million.
Previous wording
Fixed Index Annuities Net inflows decreased by $973 million primarily due to lower premiums and deposits of $252 million, higher surrenders and withdrawals of $672 million and higher death benefits of $49 million.
Current wording
Fixed Index Annuities Net inflows decreased by $1.3 billion primarily due to higher surrenders and withdrawals of $1.1 billion, lower premiums and deposits of $178 million and higher death benefits of $66 million.
Previous wording
Variable Annuities Net outflows increased $1.0 billion primarily due to lower premium and deposits of $256 million, higher surrenders and withdrawals of $762 million and higher death benefits of $26 million.
Current wording
Variable Annuities Net outflows increased $1.5 billion primarily due to higher surrenders and withdrawals of $1.2 billion, lower premium and deposits of $206 million and higher death benefits of $65 million.
Previous wording
(a)Spread income represents net investment income less interest credited to policyholder account balances, exclusive of amortization of DSI of $4 million and $3 million for the three months ended June 30, 2024 and 2023, respectively, and $7 million and $7 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
(a)Spread income represents net investment income less interest credited to policyholder account balances, exclusive of amortization of DSI of $3 million and $3 million for the three months ended September 30, 2024 and 2023, respectively, and $10 million and $10 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
•lower spread income of $22 million due to lower base spread income of $13 million reflecting higher crediting rates and a decrease in variable investment income of $9 million primarily driven by lower alternative investment income.
Current wording
•lower spread income of $33 million due to lower base spread income of $43 million reflecting lower yields on base portfolio and higher crediting rates, partially offset by higher variable investment income of $10 million primarily driven by higher alternative investment income.
Showing the first 40 of 117 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•lower premiums of $1.8 billion primarily on new pension risk transfer business;and
Current report — wording carried from elsewhere
Adjusted pre-tax operating loss decreased $43 million primarily due to:
Current report — wording carried from elsewhere
•higher asset management income of $39 million driven by higher income from legacy investments; and
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
•higher net gain on divestitures of $182 million primarily from the gain on the sale of AIG Life U.K.
Previous report — wording carried elsewhere
•lower policyholder benefits of $1.8 billion primarily on new pension risk transfer business;
Previous report — wording carried elsewhere
(a)Spread income represents net investment income less interest credited to policyholder account balances, exclusive of amortization of DSIof$13 million and
Previous report — wording carried elsewhere
•lower general operating expenses of $17 million.
Previous report — wording carried elsewhere
•lower domestic general operating expenses of $13 million, driven by expense efficiencies; and
Previous report — wording carried elsewhere
•higher losses from Other sources of earnings of $19 million.
Previous report — wording carried elsewhere
Future Policy Benefits, Policyholder Contract Deposits and Market Risk Benefits