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What changed in Corebridge Financial, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Corebridge Financial, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+1411 added−1674 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-15)

Top changes in Corebridge Financial, Inc.'s 2024 10-K

1411 paragraphs added · 1674 removed · 1205 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

205 edited+48 added−81 removed263 unchanged
Biggest changeIn 2023, employees volunteered more than 14,000 hours and personally donated to causes and initiatives important to them and Corebridge. As part of our commitment to promoting financial wellness and community resilience more broadly, we also partner with the Foundation for Financial Planning to increase pro bono financial planning for at-risk Americans.
Biggest changeAs part of our commitment to promoting financial wellness and community resilience more broadly, we partner with the Foundation for Financial Planning to increase pro bono financial planning for Americans. Our Legal Pro Bono program provides a range of pro bono services, including legal advice and counsel to those who might not have other avenues of assistance available to them.
ERISA We provide products and services to certain employee benefit plans that are subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986, as amended (the “Code”). Plans subject to ERISA include certain pension and profit sharing plans and welfare plans, including health, life and disability plans.
ERISA We provide products and services to certain employee benefit plans that are subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986, as amended (the “Code”). Plans subject to ERISA include certain pension and profit-sharing plans and welfare benefit plans, including health, life and disability plans.
The NAIC adopted Regulatory Considerations Applicable (But Not Exclusive) to Private Equity (“PE”) Owned Insurers (the “Regulatory Considerations”) in 2022, intended to identify areas where existing disclosures, policies, control and affiliation requirements, and other procedures should be modified, or new ones created, to address any gaps based on the increase in the number of private equity-owned insurers, the role of asset managers in insurance and the potential for control via asset management arrangements, and the increase of private investments in insurers’ portfolios, among other potential gaps.
The NAIC adopted Regulatory Considerations Applicable (But Not Exclusive) to Private Equity (“PE”) Owned Insurers (the “Regulatory Considerations”) in 2022, intended to identify areas where existing disclosures, policies, control and affiliation requirements, and other procedures should be modified, or new ones created, to address any gaps based on the increase in the number of private equity-owned insurers, the role of asset managers in insurance and the potential for control via asset management arrangements, and the increase of private investments in insurers’ portfolios.
Additionally, in the United States, where the majority of our businesses are based, while the federal government does not directly regulate insurance business, federal legislation and administrative policies in several areas, including pension regulation, age and sex discrimination, financial services regulation, securities regulation and federal taxation, can significantly affect the insurance industry and certain of our other operations.
Additionally, in the United States, where the majority of our businesses are based, while the federal government does not directly regulate insurance business, federal legislation and administrative policies in several areas, including pension regulation, age and sex discrimination, financial services regulation, securities regulation, derivatives regulation and federal taxation, can significantly affect the insurance industry and certain of our other operations.
In the United States, we offer life insurance products with accelerated death benefits that can be used to cover financial needs during one’s later retirement years. We will continue to be an industry leader and advocate for insurance products and services that will serve the needs of our customers and partners, and help ensure financial security for all.
In the United States, we offer life insurance products with accelerated death benefits that can be used to cover financial needs during one’s later retirement years. We continue to be an industry leader and advocate for insurance products and services that can serve the needs of our customers and partners and help ensure financial security for all.
The NAIC’s Insurance Holding Company System Regulatory Act and the Insurance Holding Company System Model Regulation (together, the “Holding Company Models”), versions of which have been enacted by all of the states in which we have domestic insurers, generally require registration and periodic reporting by insurance companies that are licensed in such jurisdictions and are controlled by other entities.
Holding Company and Dividend Regulation The NAIC’s Insurance Holding Company System Regulatory Act and the Insurance Holding Company System Model Regulation (together, the “Holding Company Models”), versions of which have been enacted by all of the states in which we have domestic insurers, generally require registration and periodic reporting by insurance companies that are licensed in such jurisdictions and are controlled by other entities.
At the state level, California adopted climate disclosure and financial reporting legislation, the Climate Corporate Data Accountability Act, and the Climate Related Financial Risk Act, in 2023, which will require, beginning in 2026, reporting from large U.S. public and private companies doing business in California on greenhouse gas emissions and biennial climate-related financial risk reports.
At the state level, California adopted climate disclosure and financial reporting legislation, the Climate Corporate Data Accountability Act, and the Climate Related Financial Risk Act, in 2023, which will require, beginning in 2026, reporting from large U.S. public and private companies doing business in California on certain greenhouse gas emissions and biennial climate-related financial risk reports.
Fiedler served as Executive Vice President, Strategic Accounts for AIG Financial Distributors, responsible for working closely with the organization’s business teams to fully meet the product and services needs of AIG Life & Retirement’s largest clients from May 2012 through April 2019. Prior to joining AIG, Ms.
Fiedler served as Executive Vice President, Strategic Accounts for AIG Financial Distributors, responsible for working closely with the organization’s business teams to fully meet the product and services needs of AIG Life & Retirement’s largest clients from May 2012 through May 2019. Prior to joining AIG, Ms.
Monitoring and oversight of external providers will be performed by our Chief Investment Officer in conjunction with our Finance, Legal, Enterprise Risk Management and Compliance Departments. All externally managed assets will be folded into our credit, market, capital, liquidity and foreign exchange risk monitoring frameworks.
Monitoring and oversight of external providers will be performed by our Chief Investment Officer in conjunction with our Finance, Legal, Enterprise Risk Management and Compliance Departments. All externally managed assets are folded into our credit, market, capital, liquidity and foreign exchange risk monitoring frameworks.
Markets in Financial Instruments Directive II The Markets in Financial Instruments Directive II (“MiFID II”) and Markets in Financial Instruments Regulation took effect in Europe on January 3, 2018. MiFID II and the related regulations are intended to create transparency in market trading by, for example, imposing trade and transaction reporting and other requirements.
Markets in Financial Instruments Directive II The Markets in Financial Instruments Directive II (“MiFID II”) and Markets in Financial Instruments Regulation (“MiFIR”) took effect in Europe on January 3, 2018. MiFID II and the related regulations are intended to create transparency in market trading by, for example, imposing trade and transaction reporting and other requirements.
Regulation BI established new duties of care, compliance, disclosure, and conflict mitigation that broker-dealers and their associated persons must meet when making a recommendation of a securities transaction or investment strategy involving securities to a retail customer.
Regulation BI established duties of care, compliance, disclosure, and conflict mitigation that broker-dealers and their associated persons must meet when making a recommendation of a securities transaction or investment strategy involving securities to a retail customer.
Out-of-plan products and services: Through our employee financial advisors , we offer a variety of annuity, advisory and brokerage products to help clients meet their retirement savings goals outside of traditional employer sponsored pension plans.
Out-of-plan products and services: Through our employee financial advisors , we offer a variety of annuity, advisory and brokerage products to help clients meet their retirement savings goals outside of traditional employer sponsored retirement plans.
The amended regulation also imposes additional duties on life insurance companies in relation to these transactions, such as requiring insurers to establish and maintain procedures designed to prevent financial exploitation and abuse.
The regulation also imposes additional duties on life insurance companies in relation to these transactions, such as requiring insurers to establish and maintain procedures designed to prevent financial exploitation and abuse.
HEALTH AND SAFETY We take appropriate measures to provide a safe and healthy work environment and meet our responsibilities regarding health, safety and welfare of employees engaging in Corebridge Financial business activities.
HEALTH AND SAFETY We take appropriate measures to provide a safe and healthy work environment and meet our responsibilities regarding the health, safety, and welfare of employees engaging in Corebridge Financial business activities.
See “Risk Factors—Risks Relating to Regulation—New domestic or international laws and regulations, or new interpretations of current laws and regulations, may affect our ability to compete effectively.” Further, insurance and other regulatory authorities and law enforcement agencies, attorneys general and other governmental authorities from time to time make inquiries and conduct examinations or investigations regarding our compliance, as well as compliance by other companies in our industry, with applicable laws.
See “Risk Factors—Risks Relating to Regulation—New domestic or international laws and regulations, or new interpretations of current laws and regulations, may affect our ability to operate efficiently or compete effectively.” Further, insurance and other regulatory authorities and law enforcement agencies, attorneys general and other governmental authorities from time to time make inquiries and conduct examinations or investigations regarding our compliance, as well as compliance by other companies in our industry, with applicable laws.
AGC is domiciled in Missouri and is primarily regulated by the Missouri Department of Commerce and Insurance, each of AGL and VALIC is domiciled in Texas and is primarily regulated by the Texas Department of Insurance, and USL is domiciled in New York and is primarily regulated by the New York State Department of Financial Services (“NYDFS”).
AGC is domiciled in Missouri and is primarily regulated by the Missouri Department of Commerce and Insurance, AGL and VALIC are each domiciled in Texas and are primarily regulated by the Texas Department of Insurance, and USL is domiciled in New York and is primarily regulated by the New York State Department of Financial Services (“NYDFS”).
With fewer individuals covered by traditional pension plans, annuities can fill a gap in retirement portfolios by providing a monthly check for as long as a person lives, no matter how the market performs. We are a leading provider of annuity products that offer the opportunity for growth, principal protection and protected income for life.
With fewer individuals covered by traditional pension plans, annuities can fill a gap in retirement portfolios by providing a monthly payment for as long as a person lives, no matter how the market performs. We are a leading provider of annuity products that offer the opportunity for growth, principal protection and protected income for life.
As of December 31, 2023, 76% of our variable annuity account value has a GMWB and we have a small portion of in-force contracts with guaranteed minimum income benefits (“GMIBs”), although as of 2006 we no longer offer this guaranteed benefit feature and the majority of this exposure has been reinsured.
As of December 31, 2024, 76% of our variable annuity account value has a GMWB and we have a small portion of in-force contracts with guaranteed minimum income benefits (“GMIBs”), although as of 2006 we no longer offer this guaranteed benefit feature and the majority of this exposure has been reinsured.
Our strong competitive position is supported by: • our scaled platform and position as a leading life and annuity company across a broad range of products, managing or administering $383.8 billion in client assets as of December 31, 2023; • our four businesses, which provide a diversified and attractive mix of spread income, fee income and underwriting margin; • our broad distribution platform, which gives us access to end customers, consultants, retirement plan sponsors, banks, broker-dealers, general agencies, independent marketing organizations and independent insurance agents; • our proven expertise in product design, which positions us to optimize risk-adjusted returns as we grow our business; • our strategic partnership with Blackstone Inc. and its subsidiaries (“Blackstone”), which we believe will allow us to further grow both our retail and institutional product lines, and enhance risk-adjusted returns; • our high-quality liability profile, supported by our strong balance sheet and disciplined approach to risk management, which has limited our exposure to product features and portfolios with less attractive risk-adjusted returns; • our ability to deliver attractive cash flows and financial returns; and • our strong and experienced senior management team.
Our strong competitive position is supported by: • our scaled platform and position as a leading life and annuity company across a broad range of products, managing or administering $404.0 billion in client assets as of December 31, 2024; • our four businesses, which provide a diversified and attractive mix of spread income, fee income and underwriting margin; • our broad distribution platform, which gives us access to end customers, consultants, retirement plan sponsors, banks, broker-dealers, general agencies, independent marketing organizations and independent insurance agents; • our proven expertise in product design, which positions us to optimize risk-adjusted returns as we grow our business; • our strategic partnership with Blackstone Inc. and its subsidiaries (“Blackstone”), which we believe will allow us to further grow both our retail and institutional product lines, and enhance risk-adjusted returns; • our high-quality liability profile, supported by our strong balance sheet and disciplined approach to risk management, which has limited our exposure to product features and portfolios with less attractive risk-adjusted returns; • our ability to deliver attractive cash flows and financial returns; and • our strong and experienced senior management team.
AIG Direct primarily markets to middle market consumers through a variety of direct channels, including several types of digital channels such as search advertising, display advertising and email as well as direct mail. Brokerage: A variety of traditional intermediaries market our Term and IUL products to middle market, mass affluent, affluent and some high net worth markets.
Corebridge Direct primarily markets to middle market consumers through a variety of direct channels, including several types of digital channels such as search advertising, display advertising and email as well as direct mail. Brokerage: A variety of traditional intermediaries market our Term and IUL products to middle market, mass affluent, affluent and some high net worth markets.
Pinksy is a Chartered Financial Analyst and Fellow of the Society of Actuaries. Christopher Smith has served as Chief Operating Officer of Corebridge Financial since July 2023. Prior to joining Corebridge, Mr. Smith was Head of Group Benefits for Guardian Life, and previously served as Head of Global Operations for MetLife.
Pinsky is a Chartered Financial Analyst and Fellow of the Society of Actuaries. Christopher Smith has served as Chief Operating Officer of Corebridge Financial since July 2023. Prior to joining Corebridge, Mr. Smith was Head of Group Benefits for Guardian Life, and previously served as Head of Global Operations for MetLife.
Prior to joining AIG, Mr. Novak served as Managing Director in the Financial Institutions Risk Management business at Goldman Sachs for 12 years. Prior to that, Mr. Novak served as an Associate in the Reinsurance Underwriting division at Berkshire Hathaway for four years. Mr. Novak holds the Chartered Financial Analyst professional designation.
Novak served as Managing Director in the Financial Institutions Risk Management business at Goldman Sachs for 12 years. Prior to that, Mr. Novak served as an Associate in the Reinsurance Underwriting division at Berkshire Hathaway for four years. Mr. Novak holds the Chartered Financial Analyst professional designation.
Strategy Continue to grow our sophisticated advisory platform We intend to continue to grow our high-margin, capital-efficient in-plan and out-of-plan advisory platform by providing comprehensive financial planning services through approximately 1,000 employee financial advisors as of December 31, 2023.
Strategy Continue to grow our sophisticated advisory platform We intend to continue to grow our high-margin, capital-efficient in-plan and out-of-plan advisory platform by providing comprehensive financial planning services through approximately 1,000 employee financial advisors as of December 31, 2024.
Changes to model laws and regulations or NAIC handbooks resulting from an analysis for the Regulatory Considerations may impact our insurance company subsidiaries’ affiliate relationships and pursuit of strategic transactions, investment portfolios and financial condition.
Changes to model laws and regulations or NAIC handbooks resulting from an analysis for the Regulatory Considerations may impact our insurance company subsidiaries’ affiliate and related party relationships and pursuit of strategic transactions, investment portfolios and financial condition.
We have implemented the requirements of Regulation BI and Form CRS, and continue to monitor interpretative guidance and enforcement activity from federal securities regulators. State Standard of Care Developments In 2020, the NAIC adopted revisions to its Suitability in Annuity Transactions Model Regulation (#275) (“NAIC Model”) implementing a best interest standard of care applicable to sales and recommendations of annuities.
We have implemented the requirements of Regulation BI and Form CRS, and continue to monitor interpretive guidance and enforcement activity from federal securities regulators. State Standard of Conduct Developments In 2020, the NAIC adopted revisions to its Suitability in Annuity Transactions Model Regulation (#275) (“NAIC Model”) implementing a best interest standard of care applicable to sales and recommendations of annuities.
(b) Includes employee financial advisors . Our distribution strategy is built around our approximately 433 professionals maintaining long-term relationships with the firms that distribute our products and the individual agents and registered representatives within those firms.
(b) Includes employee financial advisors . Our distribution strategy is built around our professionals maintaining long-term relationships with the firms that distribute our products and the individual agents and registered representatives within those firms.
We continue to execute our multi-year strategies to enhance returns, including building state-of-the-art digital platforms and underwriting innovations, which are expected to continue to bring process improvements and cost efficiencies. Products We are focused on providing financial security for our policyholders and their loved ones when they need it most.
We continue to execute our multi-year strategies to enhance returns, including building state-of-the-art digital platforms and underwriting innovations, which are expected to continue to bring process improvements and cost efficiencies. Products We are focused on providing financial security for our policyholders and their beneficiaries when they need it most.
We bear the risk associated with the interest credits that our clients earn, which is managed through hedging (as discussed below) in order to minimize the index exposure on our balance sheet. This is in addition to the pricing and renewal rate management that we employ against both fixed annuity and fixed index annuity products.
We bear the risk associated with the interest credits that our clients earn, which is managed through hedging (as discussed below) in order to minimize the index exposure on our balance sheet. This is in addition to the pricing and renewal rate management that we employ against fixed, fixed index and registered index linked annuity products.
HIGH QUALITY PORTFOLIO The fixed maturity security portfolio of our insurance operating subsidiaries, excluding the Fortitude Re funds withheld assets, was 95% investment grade as of December 31, 2023.
HIGH QUALITY PORTFOLIO The fixed maturity security portfolio of our insurance operating subsidiaries, excluding the Fortitude Re funds withheld assets, was 95% investment grade as of December 31, 2024.
Our proprietary annuities include: • Fixed annuities: We offer a fixed annuity with a multi-year guaranteed fixed rate and another version with a guaranteed lifetime income benefit; • Fixed index annuities: We offer a fixed index annuity providing accumulation and guaranteed lifetime income with a variety of index crediting strategies and multiple indexes; and • Variable annuities: We offer a variable annuity for asset accumulation in both a brokerage and investment advisory account, including a version with an optional guaranteed lifetime income rider. • Advisory and brokerage products: • Our investment advisory solution offers fiduciary, fee-based investments with a variety of asset managers and strategists; and • Our full-service brokerage offering supports a limited non-proprietary variable annuity, securities brokerage accounts, mutual funds and 529 plans.
Our proprietary annuities include: • Fixed annuities: We offer a fixed annuity with a multi-year guaranteed fixed rate and another version with a guaranteed lifetime income benefit; • Fixed index annuities: We offer a fixed index annuity for asset accumulation with a variety of index crediting strategies and multiple indexes, including a version with an optional guaranteed lifetime income benefit; and • Variable annuities: We offer a variable annuity for asset accumulation in both a brokerage and investment advisory account, including a version with an optional guaranteed lifetime income rider. • Advisory and brokerage products: • Our investment advisory solution offers fiduciary, fee-based investments with a variety of asset managers and strategists, fee based financial planning; and • Our full-service brokerage offering supports a limited non-proprietary variable annuity, securities brokerage accounts, life insurance, mutual funds and 529 plans.
The RBC ratio of each of our U.S. based insurance companies, determined in accordance with NAIC instructions, exceeded minimum required levels as of December 31, 2023.
The RBC ratio of each of our U.S. based insurance companies, determined in accordance with NAIC instructions, exceeded minimum required levels as of December 31, 2024.
Fortitude Re Fortitude Re is a Bermuda reinsurance company which was established in 2018 by AIG to enter into a series of reinsurance transactions related to AIG’s run-off portfolio.
Fortitude Re Fortitude Re is a Bermuda reinsurance company established in 2018 by AIG to enter into a series of reinsurance transactions related to AIG’s run-off portfolio.
Corebridge | 2023 Form 10-K 29 TABLE OF CONTENTS ITEM 1 | Business Title VII of Dodd-Frank provides for significantly increased regulation of, and restrictions on, swap and security-based swap markets and transactions. This regulation has affected and, as additional regulations come into effect, could further affect, various activities of insurance and other financial services companies.
Corebridge | 2024 Form 10-K 30 TABLE OF CONTENTS ITEM 1 | Business Title VII of Dodd-Frank provides for significantly increased regulation of, and restrictions on, swap and security-based swap markets and transactions. This regulation has affected and, as additional regulations come into effect, could further affect, various activities of insurance and other financial services companies.
Fiedler was the Senior Director of National Account Management at Invesco U.S. from September 2007 to May 2012 and, prior to that, spent 12 years at AIM Distributors. She currently serves as a director of Archer Holdco, LLC. and Immediate Past Chair of the Insured Retirement Institute and a Board Director for the Foundation for Financial Planning.
Fiedler was the Senior Director of National Account Management at Invesco U.S. from September 2007 to May 2012 and, prior to that, spent 12 years at AIM Distributors. She currently serves as a trustee for the Foundation for Financial Planning and Immediate Past Chair of the Insured Retirement Institute and a Board Director for the Foundation for Financial Planning.
We have several risk management features that are embedded in the majority of our in-force business as described above. Finally, we deploy a sophisticated dynamic hedging program that aggregates risk at the portfolio level to realize efficiencies across our platform and seeks to produce consistently strong results through a variety of economic environments.
We have several risk management features that are embedded in the majority of our in-force business. Finally, we deploy a sophisticated hedging program that aggregates risk at the portfolio level to realize efficiencies across our platform and seeks to produce consistently strong results through a variety of economic environments.
Over time, we support our clients entering the spending phase of their financial journey by reviewing solutions such as remaining in-plan or other out-of-plan options, with approximately 23% of rollovers out of their retirement plans being retained by our advisors in an out-of-plan IRA in the year ended December 31, 2023.
Over time, we support our clients entering the spending phase of their financial journey by reviewing solutions such as remaining in-plan or other out-of-plan options, with approximately 22% of rollovers out of their retirement plans being retained by our advisors in an out-of-plan IRA in the year ended December 31, 2024.
Also, specialized internal teams will work closely with business personnel to develop asset strategies tied to insurance company objectives so that our investment operations will continue to be integrated with our pricing and product development.
Also, specialized internal teams will work closely with business personnel to develop asset strategies tied to insurance company objectives so that our investment strategy and portfolio construction operations will continue to be integrated with our pricing and product development.
We offer a variety of optional benefits within these products, including lifetime income guarantees and death benefits and sell our annuity products through our extensive distribution platform. For the year ended December 31, 2023, we recorded $18.2 billion in total individual annuity sales.
We offer a variety of optional benefits within these products, including lifetime income guarantees and death benefits, and sell our annuity products through our extensive distribution platform. For the year ended December 31, 2024, we recorded $22.2 billion in total individual annuity sales.
Our separate account investment products are also subject to applicable state insurance regulation. We have several subsidiaries that are registered as broker-dealers under the Exchange Act and are members of FINRA and/or are registered as investment advisers under the Investment Advisers Act of 1940, as amended (the ‘‘Advisers Act’’).
Our separate account investment products are also subject to applicable state insurance regulation. We have several subsidiaries that are registered as broker-dealers under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and are members of FINRA and/or are registered as investment advisers under the Investment Advisers Act of 1940, as amended (the ‘‘Advisers Act’’).
This regulation also involves the registration of mutual funds and other investment products offered by our businesses, and the separate accounts through which our variable life insurance and variable annuity products are issued, as investment companies under the Investment Company Act, except where exempt.
This regulation also involves the registration of mutual funds and other investment products offered by our businesses, and the separate accounts through which our variable life insurance, variable annuity, registered index linked annuity and mutual fund products are issued, as investment companies under the Investment Company Act, except where exempt.
Additional changes in standard of care requirements or new standards issued by governmental authorities, such as the DOL, the SEC, the NAIC or state regulators and/or legislators, have impacted, and may impact our businesses, results of operations and financial condition.
Additional changes in standard of care requirements or new standards issued by governmental authorities, such as the DOL, the SEC, the NAIC or state regulators and/or legislators, have impacted, and may impact our businesses, results of operations and financial condition and may increase regulatory and litigation risk.
Corebridge | 2023 Form 10-K 8 TABLE OF CONTENTS ITEM 1 | Business Target opportunistic and profitable growth Our strong market positions and distribution relationships allow us to opportunistically target growth in products where market dynamics provide for attractive returns.
Corebridge | 2024 Form 10-K 9 TABLE OF CONTENTS ITEM 1 | Business Target opportunistic and profitable growth Our strong market positions and distribution relationships allow us to opportunistically target growth in products where market dynamics provide for attractive returns.
We also offer optional living benefits for some of our fixed annuity products. The market risk associated with these living benefits is mitigated as the return on fixed annuities uses the guaranteed minimum interest rate as a floor, which prevents the account value from declining due to market returns. We bear the risk of investment performance for fixed annuity products.
The market risk associated with these living benefits is mitigated as the return on fixed annuities uses the guaranteed minimum interest rate as a floor, which prevents the account value from declining due to market returns. We bear the risk of investment performance for fixed annuity products.
The SEC has also adopted comprehensive rules changing the regulation of investment advisers to private funds, and has proposed rules that prohibit investment advisers from outsourcing certain services or functions without meeting minimum requirements, address investment adviser custody of client assets and require investment advisers (and broker-dealers) to neutralize or eliminate conflicts of interests associated with advisers’ use of predictive data analytics in connection with certain investor interactions.
The SEC has also proposed rules that prohibit investment advisers from outsourcing certain services or functions without meeting minimum requirements, address investment adviser custody of client assets and require investment advisers (and broker-dealers) to neutralize or eliminate conflicts of interests associated with advisers’ use of predictive data analytics in connection with certain investor interactions.
We presently offer simple GMDBs, with 88% of our variable annuity GMDB account value as of December 31, 2023 either providing for a return of premium or locking-in a maximum anniversary value, and have limited exposure to legacy GMDB options, including rollups which represented 4% of variable annuity GMDB account value as of December 31, 2023.
We presently offer GMDBs, with 87% of our variable annuity GMDB account value as of December 31, 2024 either providing for a return of premium or locking-in a maximum anniversary value, and have limited exposure to legacy GMDB options, including rollups which represented 4% of variable annuity GMDB account value as of December 31, 2024.
As of December 31, 2023, approximately 1.6 million of our in-plan participants did not have an out-of-plan product, resulting in a significant pipeline of potential clients for deeper engagement with our employee financial advisors .
As of December 31, 2024, approximately 1.5 million of our in-plan participants did not have an out-of-plan product, resulting in a significant pipeline of potential clients for deeper engagement with our employee financial advisors .
Corebridge | 2023 Form 10-K 11 TABLE OF CONTENTS ITEM 1 | Business Competition Our Group Retirement segment sells annuities and other brokerage and advisory services and competes for plan sponsor and out-of-plan clients.
Corebridge | 2024 Form 10-K 12 TABLE OF CONTENTS ITEM 1 | Business Competition Our Group Retirement segment sells annuities and other brokerage and advisory services and competes for plan sponsor and out-of-plan clients.
Regardless of the market, we seek to provide our policyholders with meaningful value for their premium dollars. Our current distribution channel structure is outlined below: AIG Direct: Our direct-to-consumer channel employs approximately 120 salaried agents as of December 31, 2023, and sells Term products through a call center model.
Regardless of the market, we seek to provide our policyholders with meaningful value for their premium dollars. Our current distribution channel structure is outlined below: Corebridge Direct: Our direct-to-consumer channel employs approximately 85 salaried agents as of December 31, 2024, and sells Term products through a call center model.
The fixed maturity security portfolio of our insurance operating subsidiaries excludes $121 million of securities related to consolidated investment entities that do not represent direct investments of Corebridge’s insurance subsidiaries and $732 million of eliminations primarily related to the consolidated investment entities and the insurance operating subsidiaries.
The fixed maturity security portfolio of our insurance operating subsidiaries excludes $61 million of securities related to consolidated investment entities that do not represent direct investments of Corebridge’s insurance subsidiaries and $800 million of eliminations primarily related to the consolidated investment entities and the insurance operating subsidiaries.
Prior to his current role, Mr. Pinksy was Senior Vice President of Individual Retirement Pricing and Product Development and led Individual Retirement Products at AIG. Prior to joining AIG in 2014, he led the Annuity Product team at Prudential, and, before that, held various life insurance and annuity product development positions with Allstate. Mr.
Pinsky was Senior Vice President of Individual Retirement Pricing and Product Development and led Individual Retirement Products at AIG. Prior to joining AIG in 2014, he led the Annuity Product team at Prudential, and, before that, held various life insurance and annuity product development positions with Allstate. Mr.
Derivatives Regulation of, and restrictions on, derivatives markets and transactions were adopted outside the United States in conjunction with similar regulation promulgated by U.S. regulators. (For U.S. derivatives discussion, see “U.S.
Derivatives Regulation of, and restrictions on, derivatives markets and transactions were adopted outside the United States in conjunction with similar regulation promulgated by U.S. regulators. For U.S. derivatives discussion, see “U.S. Regulation—Dodd-Frank” for further information.
Item 1. | Business Index to Business Page O ur Company 5 Our Segments 6 Investment Management 21 Human Capital Management 24 Environmental, Social and Governance 25 Intellectual Property 26 Regulation 26 Information about our Executive Officers 37 Corebridge | 2023 Form 10-K 4 TABLE OF CONTENTS ITEM 1 | Business Our Company OVERVIEW We are one of the largest providers of retirement solutions and insurance products in the United States, committed to helping individuals plan, save for and achieve secure financial futures.
Item 1. | Business Index to Business Page O ur Company 6 Our Segments 7 Investment Management 21 Human Capital Management 25 Intellectual Property 26 Regulation 27 Information about our Executive Officers 37 Corebridge | 2024 Form 10-K 5 TABLE OF CONTENTS ITEM 1 | Business Our Company OVERVIEW We are one of the largest providers of retirement solutions and insurance products in the United States, committed to helping individuals plan, save for and achieve secure financial futures.
Regulation—Dodd-Frank” for further information.) For instance, the EU and UK established a set of regulatory requirements for EU and UK derivatives activities and EU- and UK-regulated entities under the European Market Infrastructure Regulation (“EMIR”) and English law, respectively.
For instance, the EU and UK established a set of regulatory requirements for EU and UK derivatives activities and EU- and UK-regulated entities under the European Market Infrastructure Regulation (“EMIR”) and English law, respectively.
These laws and regulations impose a broad range of obligations including collecting , disclosing, using, transferring, retaining, deleting, and otherwise processing (collectively, “Processing”) personal information in compliance with certain restrictions; notifying data subjects regarding our personal information Processing practices; and maintaining a security program designed to protect the confidentiality, availability and integrity of personal information, sensitive non-public information and our information systems.
These laws and regulations impose a broad range of obligations including collecting, disclosing, using, transferring, retaining, deleting, and otherwise processing (collectively, “Processing”) Company Information in compliance with certain restrictions; notifying individuals regarding our personal information Processing practices; and maintaining a security program designed to protect the confidentiality, availability and integrity of Company Information and our information systems.
Individual Retirement’s annuity products are offered through a longstanding, multichannel distribution network of approximately 552 third-party firms including banks, broker-dealers, general agencies, independent marketing organizations and independent insurance agents as of December 31, 2023. At Corebridge Financial Distributors, we have approximately 433 professionals who work with these firms and their associated advisors to market and sell our products.
Individual Retirement’s annuity products are offered through a longstanding, multichannel distribution network of approximately 490 third-party firms including banks, broker-dealers, general agencies, independent marketing organizations and independent insurance agents as of December 31, 2024. At Corebridge Financial Distributors, our distribution professionals work with these firms and their associated advisors to market and sell our products.
Our CLO portfolio consists of 99% investment grade and 93% NAIC 1 assets and the underlying collateral pools predominantly consist of first lien senior secured loans. Our ABS portfolio is focused on private ABS that are secured by high-quality assets with recurring cash flow streams and consists of approximately 99% investment grade and 64% NAIC 1 assets.
Our CLO portfolio consists of 100% investment grade and 90% NAIC 1 assets and the underlying collateral pools predominantly consist of first lien senior secured loans. Our ABS portfolio is focused on both public and private ABS that are secured by high-quality assets with recurring cash flow streams and consists of approximately 99% investment grade and 66% NAIC 1 assets.
U.S. federal and state legislatures and government agencies and self-regulatory bodies are expected to continue to consider additional laws, regulations and guidelines relating to privacy and other aspects of customer information and to protecting the ongoing confidentiality, availability and integrity of personal information, sensitive non-public information and information systems.
U.S. federal and state legislatures and government agencies and self-regulatory bodies continued to be active in 2024 and are expected to continue to consider additional laws, regulations and guidelines relating to privacy and other aspects of customer information and to protecting the ongoing confidentiality, availability and integrity of personal information, sensitive non-public information, information systems and business operations.
We are well-diversified across our operating businesses with our Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses representing 60%, 20%, 10% and 10% of associated Adjusted Pre-Tax Operating Income (“APTOI”), respectively, for the year ended December 31, 2023. Our diversified business model is enabled by our long-standing distribution relationships that are distinguished through both their breadth and depth.
We are well-diversified across our operating businesses with our Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses representing 59%, 18%, 11% and 12% of associated Adjusted Pre-Tax Operating Income (“APTOI”), respectively, for the year ended December 31, 2024. Our diversified business model is enabled by our long-standing distribution relationships that are distinguished through both their breadth and depth.
Under the investment management agreements with BlackRock, we completed the transfer of the management of liquid fixed income and certain private placement assets to BlackRock in 2022. As of December 31, 2023, BlackRock managed approximately $85.3 billion in book value of assets in our investment portfolio.
Under the investment management agreements with BlackRock, we completed the transfer of the management of liquid fixed income and certain private placement assets to BlackRock in 2022. As of December 31, 2024, BlackRock managed approximately $86.8 billion in book value of assets in our investment portfolio.
The Insurance Act 1978, as amended, (the “Bermuda Insurance Act”) and its related regulations and other applicable Bermuda law, impose a variety of requirements and restrictions including the filing of annual and quarterly statutory financial returns; compliance with minimum enhanced capital requirements; compliance with the BMA’s Insurance Code of Conduct; provisional restrictions on the payment of dividends and distributions; and restrictions on certain changes in control of regulated (re)insurers.
The Insurance Act 1978, as amended, (the “Bermuda Insurance Act”) and its related regulations and other applicable Bermuda laws, impose a variety of requirements and restrictions including the filing of annual and quarterly statutory financial returns; compliance with minimum enhanced capital requirements; compliance with the BMA’s Insurance Code of Conduct; provisional restrictions on the payment of dividends and distributions; restrictions on certain changes in control of regulated (re)insurers and such other standards as the BMA may impose from time to time.
Prior to his current role, Mr. Habayeb served in a number of senior financial roles for AIG, most recently as Chief Financial Officer for General Insurance where he oversaw all finance activities supporting the General Insurance business. He also served as AIG’s Deputy Chief Financial Officer and AIG’s Chief Accounting Officer.
Habayeb served in a number of senior financial roles for AIG, most recently as Chief Financial Officer for General Insurance where he oversaw all finance activities supporting the General Insurance business. He also served as AIG’s Deputy Chief Financial Officer and AIG’s Chief Accounting Officer.
He has held the Chartered Financial Analyst designation since 2003. Corebridge | 2023 Form 10-K 39 TABLE OF CONTENTS ITEM 1A | Risk Factors
He has held the Chartered Financial Analyst designation since 2003. Corebridge | 2024 Form 10-K 38 TABLE OF CONTENTS ITEM 1A | Risk Factors
Name Age Position Kevin Hogan 61 Director, President and Chief Executive Officer Elias Habayeb 51 Executive Vice President and Chief Financial Officer John Byrne 53 Executive Vice President of Financial Distributors Doug Caldwell 54 Executive Vice President and Chief Risk Officer Elizabeth Cropper 57 Executive Vice President and Chief Human Resources Officer David Ditillo 48 Executive Vice President and Chief Information Officer Terri Fiedler 60 Executive Vice President and President of Retirement Services Tim Heslin 49 Executive Vice President and President of Life Insurance Lisa Longino 57 Executive Vice President and Chief Investment Officer Amber Miller 52 Executive Vice President and Chief Auditor Christine Nixon 59 Executive Vice President and General Counsel Jonathan Novak 52 Executive Vice President and President of Institutional Markets Elizabeth Palmer 60 Executive Vice President and Chief Marketing Officer Bryan Pinsky 48 Executive Vice President and President of Individual Retirement Christopher Smith 54 Executive Vice President and Chief Operating Officer Kevin Hogan has served as a director of Corebridge since June 2021.
Name Age Position Kevin Hogan 62 Director, President and Chief Executive Officer Elias Habayeb 52 Executive Vice President and Chief Financial Officer John Byrne 54 Executive Vice President of Financial Distributors Doug Caldwell 55 Executive Vice President and Chief Risk Officer Elizabeth Cropper 58 Executive Vice President and Chief Human Resources Officer David Ditillo 49 Executive Vice President and Chief Information Officer Terri Fiedler 61 Executive Vice President and President of Retirement Services Tim Heslin 50 Executive Vice President and President of Life Insurance Polly Klane 55 Executive Vice President and General Counsel Lisa Longino 58 Executive Vice President and Chief Investment Officer Amber Miller 53 Executive Vice President and Chief Auditor Jonathan Novak 53 Executive Vice President and President of Institutional Markets Elizabeth Palmer 61 Executive Vice President and Chief Marketing and Communications Officer Bryan Pinsky 49 Executive Vice President and President of Individual Retirement Christopher Smith 55 Executive Vice President and Chief Operating Officer Kevin Hogan has served as a director of Corebridge since June 2021.
As part of ComFrame, the IAIS is developing a risk-based global insurance capital standard applicable to IAIGs, with the purpose of creating a common language for supervisory discussions of group solvency of IAIGs. Although AIG has been designated as an IAIG, we are not to date separately designated as an IAIG.
As part of ComFrame, the IAIS has adopted a risk-based global insurance capital standard applicable to IAIGs, with the purpose of creating a common language for supervisory discussions of group solvency of IAIGs. We are not to date designated as an IAIG.
We make available free of charge, through the Investor Relations section of our corporate website, the following reports (and related amendments as filed with the SEC) as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC: • Annual Reports on Form 10-K • Quarterly Reports on Form 10-Q • Current Reports on Form 8-K • Proxy Statements on Schedule 14A, as well as other filings with the SEC Also available on our corporate website: • Audit Committee Charter • Corporate Governance Guidelines • Director, Executive Officer and Senior Financial Officer Code of Business Conduct and Ethics (we will post on our website any amendment or waiver to this Code within the time period required by the SEC) • Employee Code of Conduct Except for the documents specifically incorporated by reference into this Annual Report on Form 10-K, information contained on our website or that can be accessed through our website is not incorporated by reference into this Annual Report on Form 10-K.
We make available free of charge, through the Investor Relations section of our corporate website, the following reports (and related amendments as filed with the SEC) as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC: • Annual Reports on Form 10-K • Quarterly Reports on Form 10-Q • Current Reports on Form 8-K • Proxy Statements on Schedule 14A, as well as other filings with the SEC Also available on our corporate website: • Amended and Restated Bylaws • Amended and Restated Certificate of Incorporation • Audit Committee Charter • Compensation and Management Development Committee Charter • Corporate Governance Guidelines • Director Communications Policy Corebridge | 2024 Form 10-K 36 TABLE OF CONTENTS ITEM 1 | Business • Director, Executive Officer and Senior Financial Officer Code of Business Conduct and Ethics (we will post on our website any amendment or waiver to this Code within the time period required by the SEC) • Employee Code of Conduct • Nominating and Corporate Governance Committee Charter • Third Party Code of Conduct Except for the documents specifically incorporated by reference into this Annual Report on Form 10-K, information contained on our website or that can be accessed through our website is not incorporated by reference into this Annual Report on Form 10-K.
Our commercial mortgage loans portfolio is focused on multi-family as its largest property type allocation. Our CMBS portfolio is focused on North America and includes high quality securities, with an average rating of ‘‘AA,’’ 95% of which are designated NAIC 1.
Our commercial mortgage loans portfolio is focused on multi-family as its largest property type allocation. Our CMBS portfolio is focused on North America and includes high quality securities, with an average rating of ‘‘AA,’’ 94% of which are designated NAIC 1. Our RMBS portfolio is a mix of agency and non-agency securities of which 97% are designated NAIC 1.
Corebridge | 2023 Form 10-K 7 TABLE OF CONTENTS ITEM 1 | Business The following table presents our Individual Retirement premiums and deposits by distribution channel: For the years ended December 31, (in millions) 2023 2022 2021 Broker-dealer (a) $ 7,959 43.8 % $ 5,876 38.9 % $ 7,137 52.3 % Banks 7,334 40.4 % 7,446 49.2 % 4,756 34.8 % Independent non-registered marketing organizations/ brokerage general agencies (“BGAs”) (b) 2,878 15.8 % 1,798 11.9 % 1,764 12.9 % Total $ 18,171 100.0 % $ 15,120 100.0 % $ 13,657 100.0 % (a) Includes wirehouses, independent and regional broker-dealers.
Corebridge | 2024 Form 10-K 8 TABLE OF CONTENTS ITEM 1 | Business The following table presents our Individual Retirement premiums and deposits by distribution channel: For the years ended December 31, (in millions) 2024 2023 2022 Broker-dealer (a) $ 8,767 39.5 % $ 7,959 43.8 % $ 5,876 38.9 % Banks 9,548 43.1 % 7,334 40.4 % 7,446 49.2 % Independent non-registered marketing organizations/ brokerage general agencies (“BGAs”) (b) 3,859 17.4 % 2,878 15.8 % 1,798 11.9 % Total $ 22,174 100.0 % $ 18,171 100.0 % $ 15,120 100.0 % (a) Includes wirehouses, independent and regional broker-dealers.
Our target markets include K-12 schools, higher education institutions, healthcare providers, government employers and other tax-exempt institutions, where we serve nearly 21,000 plan sponsors across all 50 states in the 403(b), 457(b), 401(a) and 401(k) markets as of December 31, 2023.
Our target markets include K-12 schools, higher education institutions, healthcare providers, government employers and other tax-exempt institutions, where we serve plan sponsors across all 50 states in the 403(b), 457(b), 401(a) and 401(k) markets.
See also Notes 8 and 21 to the Consolidated Financial Statements for additional information related to these statutory reserving requirements.
See also Notes 7 and 19 to the Consolidated Financial Statements for additional information related to these statutory reserving requirements.
Our smaller residential mortgage loans portfolio continues to be centered on high credit quality jumbo loans underwritten with full documentation, low loan-to-value ratios and high FICO scores. Our ABS and CLO portfolios are focused on investment grade assets with structural credit enhancement in pools of collateral that are managed by experienced investment managers.
The portfolio is high quality loans underwritten with full documentation, low loan to value ratios and high FICO scores. Our ABS and CLO portfolios are focused on investment grade assets with structural credit enhancement in pools of collateral that are managed by experienced investment managers.
The MiFID II requirements were implemented in the UK before the UK’s exit from the EU and then amended to reflect the UK’s exit from the EU. The Markets in Financial Instruments Regulation (“MiFIR”) and EMIR were “onshored” to become part of English law.
The MiFID II requirements were implemented in the UK before the UK’s exit from the EU and then amended to reflect the UK’s exit from the EU. MiFIR and EMIR were “onshored” to become part of English law.
While our net income experiences volatility as a result of the Fortitude Re reinsurance arrangements, it is almost entirely offset by changes in other comprehensive income (“OCI”) resulting in minimal impact to our shareholder’s equity.
While our net income experiences volatility as a result of the Fortitude Re reinsurance arrangements, it is almost entirely offset by changes in other comprehensive income (“OCI”) resulting in minimal impact to our shareholder’s equity. Investment Management OVERVIEW Investment Management is an integral part of our business model.
Unclaimed Property We are subject to the laws and regulations of states and other jurisdictions concerning identification, reporting and escheatment of unclaimed or abandoned funds, and are subject to audit and examination for compliance with these requirements.
See “Environmental, Social and Governance Regulation” for further information. Unclaimed Property We are subject to the laws and regulations of states and other jurisdictions concerning identification, reporting and escheatment of unclaimed or abandoned funds, and are subject to audit and examination for compliance with these requirements.
Additionally, regulators in the countries in which such subsidiaries operate may deem it necessary to impose restrictions on dividend distributions in the event of a significant financial market or insurance event which creates uncertainty over our future capital and solvency position.
Additionally, regulators in the countries in which such subsidiaries operate may deem it necessary to impose restrictions on dividend distributions in the event of a significant financial market or insurance event which creates uncertainty over our future capital and solvency position. The Bermuda Monetary Authority (the “BMA”) regulates our insurance subsidiary in Bermuda, Corebridge Insurance Company of Bermuda, Ltd.
Additionally, the NAIC has adopted, or is considering, several changes impacting how RBC is calculated, including initiatives aimed at a comprehensive review of RBC investment framework as well as using modeling methodology to determine RBC charges for structured securities, potentially replacing the use of rating agency ratings in certain cases.
Additionally, the NAIC has adopted, or is considering, several changes impacting how RBC is calculated, including initiatives aimed at a comprehensive review of RBC investment framework as well as using modeling methodology to determine RBC charges for structured securities.
Prior to joining Corebridge, Ms. Longino was Head of Global Investment Strategy for Prudential Financial. Previously, she held several investment roles over more than 20 years at MetLife, including Head of Insurance Asset Management, Head of Portfolio Management and Head of Investment Grade Trading. Ms.
Lisa Longino has served as Chief Investment Officer of Corebridge Financial since February 2023. Prior to joining Corebridge, Ms. Longino was Head of Global Investment Strategy for Prudential Financial. Previously, she held several investment roles over more than 20 years at MetLife, including Head of Insurance Asset Management, Head of Portfolio Management and Head of Investment Grade Trading. Ms.
Corebridge | 2023 Form 10-K 27 TABLE OF CONTENTS ITEM 1 | Business The NAIC’s Risk Management and Own Risk and Solvency Assessment Model Act (“ORSA”) requires that insurers maintain a risk management framework and conduct an internal own risk and solvency assessment of the insurer’s material risks in normal and stressed environments and submit annual ORSA summary reports to the insurance group’s lead U.S.-state regulator.
The NAIC’s Risk Management and Own Risk and Solvency Assessment Model Act (“ORSA”) requires that insurers maintain a risk management framework and conduct an internal own risk and solvency assessment of the insurer’s material risks in normal and stressed environments and submit annual ORSA summary reports to the insurance group’s lead U.S.-state regulator.
Elizabeth Cropper has served as the Head of Human Resources of Corebridge since January 2024. Prior to her current role, Ms. Cropper served in a number of senior human resources roles for AIG, most recently as Global Head of Talent and Inclusion.
Corebridge | 2024 Form 10-K 37 TABLE OF CONTENTS ITEM 1 | Business Elizabeth Cropper has served as the Head of Human Resources of Corebridge since January 2024. Prior to her current role, Ms. Cropper served in a number of senior human resources roles for AIG, most recently as Global Head of Talent and Inclusion.
In the international market, we provide funded reinsurance solutions to primary writers in the bulk purchase annuities (“BPA”) market where there is an appetite to cede risk due to capital constraints and requirements. Corebridge | 2023 Form 10-K 17 TABLE OF CONTENTS ITEM 1 | Business We are also a premier group annuity underwriter and administrator of customized PRT contracts.
In the international market, we provide funded reinsurance solutions to primary writers in the bulk purchase annuities (“BPA”) market where there is an appetite to cede risk due to capital constraints and requirements. We are also a premier group annuity underwriter and administrator of customized PRT contracts.
We maintain a diversified, high quality portfolio of fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans that, to the extent practicable, match the currency and duration characteristics of our liabilities.
Corebridge | 2024 Form 10-K 23 TABLE OF CONTENTS ITEM 1 | Business We maintain a diversified, high quality portfolio of fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans that, to the extent practicable, match the currency and duration characteristics of our liabilities.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese risks are discussed more fully in “ Risk Factors .” These risks include the following: • changes in interest rates and changes to credit spreads; • the deterioration of economic conditions, an economic slowdown or recession, changes in market conditions, weakening in capital markets, volatility in equity markets, inflationary pressures, pressures on the commercial real estate market, uncertainty regarding a potential U.S. federal government shutdown, and geopolitical tensions, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East; • the unpredictability of the amount and timing of insurance liability claims; • unavailable, uneconomical or inadequate reinsurance or recaptures of reinsured liabilities; • uncertainty and unpredictability related to our reinsurance agreements with Fortitude Re and its performance of its obligations under these agreements; • our limited ability to access funds from our subsidiaries; • our ability to incur indebtedness, our potential inability to refinance all or a portion of our indebtedness or our ability to obtain additional financing on favorable terms or at all; • our inability to generate cash to meet our needs due to the illiquidity of some of our investments; • the inaccuracy of the methodologies, estimations and assumptions underlying our valuation of investments and derivatives; • a downgrade in our IFS ratings or credit ratings; • exposure to credit risk due to non-performance or defaults by our counterparties or our use of derivative instruments to hedge market risks associated with our liabilities; • our ability to adequately assess risks and estimate losses related to the pricing of our products; • the failure of third parties that we rely upon to provide and adequately perform certain business, operations, investment advisory, functional support and administrative services on our behalf; • the impact of risks associated with our arrangement with Blackstone IM, BlackRock or any other asset manager we retain, including their historical performance not being indicative of the future results of our investment portfolio and the exclusivity of certain arrangements with Blackstone IM; • our inability to maintain the availability of critical technology systems and the confidentiality of our data, including challenges associated with a variety of privacy and information security laws; • the ineffectiveness of our risk management policies and procedures; • significant legal, governmental or regulatory proceedings; • the intense competition we face in each of our business lines and the technological changes, including the use of AI, that may present new and intensified challenges to our business; • catastrophes, including those associated with climate change and pandemics; • business or asset acquisitions and dispositions that may expose us to certain risks; • our ability to protect our intellectual property; • our ability to compete effectively in a heavily regulated industry in light of new domestic or international laws and regulations or new interpretations of current laws and regulations; • impact on sales of our products and taxation of our operations due to changes in U.S. federal income or other tax laws or the interpretation of tax laws; • the ineffectiveness of our productivity improvement initiatives in yielding our expected expense reductions and improvements in operational and organizational efficiency; • recognition of an impairment of our goodwill or the establishment of an additional valuation allowance against our deferred income tax assets as a result of our business lines underperforming or their estimated fair values declining; • differences between actual experience and the estimates used in the preparation of financial statements and modeled results used in various areas of our business; • our inability to attract and retain key employees and highly skilled people needed to support our business; Corebridge | 2023 Form 10-K 40 TABLE OF CONTENTS ITEM 1A | Risk Factors • our failure to replicate or replace functions, systems and infrastructure provided by AIG (including through shared service contracts) or our loss of benefits from AIG’s global contracts, and AIG’s failure to perform the services provided for in the Transition Services Agreement; • the significant influence that AIG has over us and conflicts of interests arising due to such relationship; • the indemnification obligations we have to AIG; • potentially higher U.S. federal income taxes due to our inability to file a single U.S. consolidated federal income tax return for five years following our IPO and our separation from AIG causing an “ownership change” for U.S. federal income tax purposes; • risks associated with the Tax Matters Agreement with AIG and our potential liability for U.S. income taxes of the entire AIG Consolidated Tax Group for all taxable years or portions thereof in which we (or our subsidiaries) were members of such group; • the risk that anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders; and • challenges related to compliance with applicable laws incident to being a public company, which is expensive and time-consuming.
Biggest changeThese risks are discussed more fully in “ Risk Factors .” These risks include the following: • changes in interest rates and changes to credit spreads; • the deterioration of economic conditions, an economic slowdown or recession, changes in market conditions, weakening in capital markets, volatility in equity markets, inflationary pressures, pressures on the commercial real estate market, and geopolitical tensions, including the ongoing armed conflicts between Ukraine and Russia and in the Middle East; • the unpredictability of the amount and timing of insurance liability claims; • unavailable, uneconomical or inadequate reinsurance or recaptures of reinsured liabilities; • uncertainty and unpredictability related to our reinsurance agreements with Fortitude Re and its performance of its obligations under these agreements; • our limited ability to access funds from our subsidiaries; • our ability to incur indebtedness, our potential inability to refinance all or a portion of our indebtedness or our ability to obtain additional financing on favorable terms or at all; • our ability to maintain sufficient eligible collateral to support business and funding strategies requiring collateralization; • our inability to generate cash to meet our needs due to the illiquidity of some of our investments; • the inaccuracy of the methodologies, estimations and assumptions underlying our valuation of investments and derivatives; • a downgrade in our IFS ratings or credit ratings; • exposure to credit risk due to non-performance or defaults by our counterparties or our use of derivative instruments to hedge market risks associated with our liabilities; • our ability to adequately assess risks and estimate losses related to the pricing of our products; • the failure of third parties that we rely upon to provide and adequately perform certain business, operations, investment advisory, functional support and administrative services on our behalf; • the impact of risks associated with our arrangement with Blackstone IM, BlackRock or any other asset manager we retain, including their historical performance not being indicative of the future results of our investment portfolio and the exclusivity of certain arrangements with Blackstone IM; • our inability to maintain the availability of critical technology systems and the confidentiality of our data, including challenges associated with a variety of privacy and information security laws; • the ineffectiveness of our risk management policies and procedures; • significant legal, governmental or regulatory proceedings; • the intense competition we face in each of our business lines and the technological changes, including the use of AI, that may present new and intensified challenges to our business; • catastrophes, including those associated with climate change and pandemics; • business or asset acquisitions and dispositions that may expose us to certain risks; • our ability to protect our intellectual property; • our ability to operate efficiently and compete effectively in a heavily regulated industry in light of new domestic or international laws and regulations or new interpretations of current laws and regulations; • impact on sales of our products and taxation of our operations due to changes in U.S. federal income or other tax laws or the interpretation of tax laws; • the ineffectiveness of our productivity improvement initiatives in yielding our expected expense reductions and improvements in operational and organizational efficiency; • differences between actual experience and the estimates used in the preparation of financial statements and modeled results used in various areas of our business; • our inability to attract and retain key employees and highly skilled people needed to support our business; • th e significant influence that AIG and Nippon have over us and conflicts of interests arising due to such relationships; • the indemnification obligations we have to AIG; Corebridge | 2024 Form 10-K 39 TABLE OF CONTENTS ITEM 1A | Risk Factors • potentially higher U.S. federal income taxes due to our inability to file a single U.S. consolidated federal income tax return for five years following our IPO and our separation from AIG causing an “ownership change” for U.S. federal income tax purposes caused by our separation from AIG; • risks associated with the Tax Matters Agreement with AIG and our potential liability for U.S. income taxes of the entire AIG Consolidated Tax Group for all taxable years or portions thereof in which we (or our subsidiaries) were members of such group; • the risk that anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders; and • challenges related to compliance with applicable laws incident to being a public company, which is expensive and time-consuming.
Cybersecurity threats can originate from a broad range of sources including terrorists, nation states, state-sponsored actors, financially motivated actors, internal actors, or third-parties (including third-party providers), and the techniques used in these attacks may change, develop and evolve rapidly, including the use of emerging technologies, such as broader forms of artificial intelligence, and are frequently or are often not recognized until after they have been launched.
Cybersecurity threats and attacks can originate from a broad range of sources including terrorists, nation states, state-sponsored actors, financially motivated actors, internal actors, or third-parties (including third-party providers), and the techniques used in these threats and attacks may change, develop and evolve rapidly, including the use of emerging technologies, such as broader forms of artificial intelligence, and are frequently or are often not recognized until after they have been launched.
The variety of applicable Privacy and Information Security Laws exposes us to heightened regulatory scrutiny and requires us to incur significant technical, legal and other expenses in an effort to ensure and maintain compliance and will continue to impact our business in the future by increasing legal, operational and compliance costs.
The variety of applicable Privacy and Information Security Laws exposes us to heightened regulatory scrutiny and requires us to incur significant technical, legal and other expenses in an effort to ensure and maintain compliance and will continue to impact our business in the future by increasing legal, operational and business compliance costs.
These and other market, economic, regulatory and political factors, including the prolonged effects of elevated inflation and macroeconomic uncertainty could have a material adverse effect on our business, results of operations, financial condition, capital and liquidity in many ways, including: • lower levels of consumer demand for and ability to afford our products that decrease revenues and profitability; • increased credit impairments, downgrades and losses across single or numerous asset classes due to lower collateral values or deteriorating cash flow and profitability by borrowers that could lead to higher defaults on the company’s investment portfolio, especially in geographic, industry or investment sectors where the company has higher concentrations of exposure, such as real estate related borrowings and widening of credit spreads that could reduce investment asset valuations, decrease fee income and increase statutory capital requirements; • increased market volatility and uncertainty that could decrease liquidity with respect to our assets and increase borrowing costs and limit access to capital markets; • the reduction of investment income generated by our investment portfolio; • the reduction in the availability of investments that are attractive from a risk-adjusted perspective; • increased likelihood of disruptions in one market or asset class spreading to other markets or asset classes; • the reduction in the availability and effectiveness of hedging instruments; • increased frequency of life insurance claims; • increased likelihood of customers choosing to defer paying premiums or stop paying premiums altogether and other impacts to policyholder behavior beyond what was contemplated in our historical pricing of our products; • increased policy withdrawals, surrenders and cancellations; • impediments to our ability to execute strategic transactions or fulfill contractual obligations, including those under ceded or assumed reinsurance contracts; • increased costs associated with third-party reinsurance, or decreased ability to obtain reinsurance on acceptable terms; • recaptures of liabilities covered by certain reinsurance contracts, including our reinsurance contracts with Fortitude Re; • increased costs related to our direct and third-party support services, labor and financing, increased credit risk and decreased sales as a result of inflationary pressures; and • limitations on business activities and increased compliance risks with respect to economic sanctions regulations relating to jurisdictions in which our businesses operate.
These and other market, economic, regulatory and political factors, including the prolonged effects of elevated inflation and macroeconomic uncertainty could have a material adverse effect on our business, results of operations, financial condition, capital and liquidity in many ways, including: • lower levels of consumer demand for and ability to afford our products that decrease revenues and profitability; • increased credit impairments, downgrades and losses across single or numerous asset classes due to lower collateral values or deteriorating cash flow and profitability by borrowers that could lead to higher defaults on the company’s investment portfolio, especially in geographic, industry or investment sectors where the company has higher concentrations of exposure, such as real estate related borrowings and widening of credit spreads that could reduce investment asset valuations, decrease fee income and increase statutory capital requirements; • increased market volatility and uncertainty that could decrease liquidity with respect to our assets and increase borrowing costs and limit access to capital markets; • the reduction of investment income generated by our investment portfolio; • the reduction in the availability of investments that are attractive from a risk-adjusted perspective; • increased likelihood of disruptions in one market or asset class spreading to other markets or asset classes; • the reduction in the availability and effectiveness of hedging instruments; • increased frequency of life insurance claims; • increased likelihood of customers choosing to defer paying premiums or stop paying premiums altogether and other impacts to policyholder behavior beyond what was contemplated in our historical pricing of our products; • increased policy withdrawals, surrenders and cancellations; • impediments to our ability to execute strategic transactions or fulfill contractual obligations, including those under ceded or assumed reinsurance contracts; • increased costs associated with third-party reinsurance, or in general, decreased ability to obtain reinsurance on acceptable terms or in a timely manner; • recaptures of liabilities covered by certain reinsurance contracts, including our reinsurance contracts with Fortitude Re; • increased costs related to our direct and third-party support services, labor and financing, increased credit risk and decreased sales as a result of inflationary pressures; and • limitations on business activities and increased compliance risks with respect to economic sanctions regulations relating to jurisdictions in which our businesses operate.
Legislators, regulators and self-regulatory organizations have in the past and may in the future periodically consider various proposals that may affect or restrict, among other things, our business practices or eligibility to do business with certain public sector clients, underwriting methods and data utilization, product designs and distribution relationships, how we market, sell or service certain products we offer, our capital, reserving and accounting requirements, price competitiveness of the products we sell and consumer demand for our products or the profitability of certain of our business lines.
Legislators, regulators and self-regulatory organizations have in the past and may in the future periodically consider various proposals that may affect or restrict, among other things, our business practices or our eligibility to do business with certain public sector clients, underwriting methods and data utilization, product designs and distribution relationships, how we market, sell or service certain products we offer, our capital, reserving and accounting requirements, reinsurance practices, price competitiveness of the products we sell and consumer demand for our products or the profitability of certain of our business lines.
None of AIG, Blackstone or their respective agents, stockholders, members, partners, affiliates or subsidiaries will generally be liable to us or any of our subsidiaries for breach of any fiduciary or other duty, as a director or otherwise, by reason of the fact that such person pursues, acquires or participates in such corporate opportunity, directs such corporate opportunity to another person or fails to present such corporate opportunity, or information regarding such corporate opportunity, to us unless, in the case of any such person who is a director or officer, such corporate opportunity is expressly offered to such director or officer in writing solely in his or her capacity as a director or officer.
None of AIG, Blackstone, Nippon or their respective agents, stockholders, members, partners, affiliates or subsidiaries will generally be liable to us or any of our subsidiaries for breach of any fiduciary or other duty, as a director or otherwise, by reason of the fact that such person pursues, acquires or participates in such corporate opportunity, directs such corporate opportunity to another person or fails to present such corporate opportunity, or information regarding such corporate opportunity, to us unless, in the case of any such person who is a director or officer, such corporate opportunity is expressly offered to such director or officer in writing solely in his or her capacity as a director or officer.
Adverse experience could arise out of a number of factors, including, but not limited to, a severe short-term event, such as a pandemic or changes to policyholder behavior during stressed economic periods, or due to mis-estimation of long-term assumptions such as mortality, interest rates, credit spreads, equity market levels and volatility and persistency assumptions.
Adverse experience could arise out of a number of factors, including, but not limited to, a severe short-term event, such as a pandemic or unexpected changes to policyholder behavior during stressed economic periods, or due to mis-estimation of long-term assumptions such as mortality, interest rates, credit spreads, equity market levels and volatility and persistency assumptions.
As a result of such low interest rates, we de-emphasized sales of interest-sensitive products in our Life Insurance segment. Volatility in credit spreads could have a material adverse effect on the valuation of our fixed income investments, our investment income and reserve calculations.
As a result of such low interest rates in the past, we de-emphasized sales of interest-sensitive products in our Life Insurance segment. Volatility in credit spreads could have a material adverse effect on the valuation of our fixed income investments, our investment income and reserve calculations.
The strategy primarily relies on hedging strategies using derivatives instruments and, to a lesser extent, reinsurance. Derivative instruments primarily composed of futures, swaps and options on equity indices and interest rates are an essential part of our hedging strategy and are selected to provide a measure of economic protection.
The strategy primarily relies on hedging strategies using derivatives instruments and, to a lesser extent, reinsurance. Derivative instruments primarily composed of futures, swaps and options on equity indices and interest rates and portfolios of derivative instruments are an essential part of our hedging strategy and are selected to provide a measure of economic protection.
Our profitability depends on multiple factors, including the impact of actual mortality, longevity, morbidity and policyholder behavior experience as compared to our assumptions; the adequacy of investment margins; our management of market and credit risks associated with investments, including the cost of hedging; our ability to maintain premiums and contract charges at a level adequate to cover mortality, benefits and contract administration expenses; the adequacy of contract charges and availability of revenue from providers of investment options offered in variable contracts to cover the cost of product features and other expenses; and management of operating costs and expenses.
Our profitability depends on multiple factors, including the impact of actual mortality, longevity, morbidity and policyholder behavior experience as compared to our assumptions; the adequacy of investment margins; our management of market and credit risks associated with investments, including the cost of hedging; costs associated with derivatives transactions; our ability to maintain premiums and contract charges at a level adequate to cover mortality, benefits and contract administration expenses; the adequacy of contract charges and availability of revenue from providers of investment options offered in variable contracts to cover the cost of product features and other expenses; and management of operating costs and expenses.
There can be no assurance that any actions taken by us to evaluate and enhance our information security and technology systems (which increasingly will include the use of artificial intelligence technology) and processes, including third-party systems and services on which we rely, as well as changes designed to update and enhance our protective measures to address new threats, will decrease the risk of a system or process failure, and there could be a gap in the associated security measures during the change period.
There can be no assurance that any actions taken by us to evaluate and enhance our information security and technology systems (which increasingly use artificial intelligence technologies) and processes, including third-party systems and services on which we rely, as well as changes designed to update and enhance our protective measures to address new threats, will decrease the risk of a system or process failure, and there could be a gap in the associated security measures during the change period.
At the same time, for annuity contracts that include guaranteed living benefits (“GLBs”), equity market declines increase the amount of our potential financial obligations related to such GLBs.
At the same time, for annuity contracts that include guaranteed living benefits (“GLBs”), equity market declines can increase the amount of our potential financial obligations related to such GLBs.
For example, increases in interest rates have impacted our investment portfolio by decreasing the estimated fair values of the fixed income securities that constitute a substantial portion of our investment portfolio.
For example, increases in interest rates have impacted our investment portfolio in the past by decreasing the estimated fair values of the fixed income securities that constitute a substantial portion of our investment portfolio.
Like other companies, the systems and networks we maintain and third-party systems and networks we use have in the past been, and will likely in the future be, subject to or targets of unauthorized or fraudulent access, including physical or electronic break-ins or unauthorized tampering, as well as attempted cyber and other security threats and other attacks such as “denial of service” attacks, phishing, untargeted but sophisticated and automated attacks, ransomware and other disruptive software.
Like other companies, the systems and networks we maintain and third-party systems and networks we use have in the past been, and will likely in the future be, subject to or targets of unauthorized or fraudulent access, including physical or electronic break-ins or unauthorized tampering, and cyber security threats, such as “denial of service” attacks, phishing, untargeted but sophisticated and automated attacks, ransomware and other disruptive software.
An interruption or reduction in certain key relationships could materially affect our ability to market our products and could materially and adversely affect our business, results of operations, financial condition and liquidity.
An interruption or reduction in key relationships could materially affect our ability to market our products and could materially and adversely affect our business, results of operations, financial condition and liquidity.
It is therefore inherently difficult to predict the size or scope of potential future losses arising from them, and developments in these matters could have a material adverse effect on our financial condition or results of operations. For a discussion of certain legal proceedings, see Note 18 to the Consolidated Financial Statements.
It is therefore inherently difficult to predict the size or scope of potential future losses arising from them, and developments in these matters could have a material adverse effect on our financial condition or results of operations. For a discussion of certain legal proceedings, see Note 16 to the Consolidated Financial Statements.
To the extent that any of our modeling practices do not accurately produce, or reproduce, data that we use to conduct any or all aspects of our business, such errors may negatively impact our business, reputation, results of operations and financial condition. Our productivity improvement initiatives may not yield our expected expense reductions and improvements in operational and organizational efficiency.
To the extent that any of our modeling practices do not accurately produce, or reproduce, data that we use to conduct any or all aspects of our business, such deviations may negatively impact our business, reputation, results of operations and financial condition. Our productivity improvement initiatives may not yield our expected expense reductions and improvements in operational and organizational efficiency.
Our risk management strategy seeks to mitigate the potential adverse effects of changes in capital markets, specifically changes in equity markets, foreign exchange rates and interest rates on guarantees related to variable annuities, fixed index annuities and index universal life insurance, and liability guarantees associated with our GLBs for certain products such as variable annuities, fixed index annuities and fixed annuities.
Our risk management strategy seeks to mitigate the potential adverse effects of changes in capital markets, specifically changes in equity markets, foreign exchange rates and interest rates on guarantees related to variable annuities, fixed index annuities, registered index linked annuities and index universal life insurance, and liability guarantees associated with our GLBs for certain products such as variable annuities, fixed index annuities and fixed annuities.
Such charges could have a material adverse effect on our consolidated results of operations, liquidity and financial condition. For further discussion regarding deferred tax assets, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations— Accounting Policies and Pronouncements —Critical Accounting Estimates—Income Taxes—Recoverability of Net Deferred Tax Asset” and Note 24 to the Consolidated Financial Statements.
Such charges could have a material adverse effect on our consolidated results of operations, liquidity and financial condition. For further discussion regarding deferred tax assets, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations— Accounting Policies and Pronouncements —Critical Accounting Estimates—Income Taxes—Recoverability of Net Deferred Tax Asset” and Note 22 to the Consolidated Financial Statements.
We are exposed to counterparty credit risk. We are exposed to credit risk arising from exposures to various counterparties related to investments, derivatives, premiums receivable and reinsurance recoverables.
We are exposed to credit risk arising from exposures to various counterparties related to investments, derivatives, premiums receivable and reinsurance recoverables.
Distributors have in the past, and may in the future, elect to renegotiate the terms of existing relationships such that those terms may not remain attractive or acceptable to us, limit the products they sell, including the types of products offered by us, or otherwise reduce or terminate their distribution relationships with us with or without cause.
Distributors have in the past, and may in the future, elect to renegotiate the terms of existing relationships such that those terms may not remain attractive or acceptable to us, limit the products they sell, including the types of products offered by us, or otherwise reduce or terminate their distribution relationships with us.
The frequency and sophistication of such threats continue to increase and often become further heightened in connection with geopolitical tensions.
The frequency and sophistication of such threats and attacks continue to increase and often become further heightened in connection with geopolitical tensions.
Conversely, sustained low interest rates as we experienced through early 2022 have negatively affected and could in the future negatively affect the performance of our investments and have reduced, and could in the future reduce, the level of investment income earned on our investment portfolios, resulting in net investment spread compression.
Conversely, sustained low interest rates that we have experienced through early 2022 have negatively affected, and could in the future negatively affect, the performance of our investments and have reduced, and could in the future reduce, the level of investment income earned on our investment portfolios, resulting in net investment spread compression.
We and our distributors are also subject to laws and regulations governing the standard of care applicable to sales of our products, the provision of advice to our customers and the manner in which certain conflicts of interest arising from or related to such sales or giving of advice are to be addressed.
We and our distributors are also subject to laws and regulations governing the standard of conduct applicable to sales of our products, the provision of advice to our customers and the manner in which certain conflicts of interest arising from or related to such sales or giving of advice are to be addressed.
We are exposed primarily to the following risks arising from, or exacerbated by, fluctuations in interest rates: • mismatch between the expected duration of our liabilities and our assets; • impairment to our ability to earn the returns or spreads assumed in the pricing and the reserving for our products; • changes in certain statutory reserve or capital requirements that are based on formulas or models that consider interest rates or prescribed interest rates, such as cash flow testing reserves; • changes in the costs of derivatives we use for hedging or increases in the volume of hedging we do; • loss related to customer withdrawals following a sharp and sustained increase in interest rates; • loss from reduced fee income, and changes in fair values of Market Risk Benefits (“MRBs”) and embedded derivatives; • the reinvestment risk associated with more prepayments on mortgage-backed securities and other fixed income securities in decreasing interest rate environments and fewer prepayments in increasing interest rate environments; • an increase in policy loans, surrenders and withdrawals as interest rates rise; • volatility in our GAAP results of operations driven by interest rate-related components of liabilities and equity market-related components of optional guaranteed benefits and the cost of associated hedges in low interest rate environments; and • higher credit losses on our investment portfolio in the event of higher interest rates.
We are exposed primarily to the following risks arising from, or exacerbated by, fluctuations in interest rates: • mismatch between the expected duration of our liabilities and our assets; • impairment to our ability to earn the returns or spreads assumed in the pricing and the reserving for our products; • changes in certain statutory reserve or capital requirements that are based on formulas or models that consider interest rates or prescribed interest rates, such as cash flow testing reserves; • changes in the costs of derivatives we use for hedging or increases in the volume of hedging we do; • loss related to customer withdrawals following a sharp and sustained increase in interest rates; • loss from reduced fee income, and changes in fair values of Market Risk Benefits (“MRBs”) and embedded derivatives net of associated hedges; • the reinvestment risk associated with more prepayments on mortgage-backed securities and other fixed income securities in decreasing interest rate environments and fewer prepayments in increasing interest rate environments; • an increase in policy loans, surrenders and withdrawals as interest rates rise; and • volatility in our GAAP results of operations driven by interest rate-related components of liabilities and equity market-related components of optional guaranteed benefits and the cost of associated hedges in low interest rate environments.
For information on our credit ratings, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources—Credit Ratings.” We are exposed to risks from our participation in repurchase programs and securities lending programs.
For information on our credit ratings, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources—Credit Ratings.” We are exposed to risks from our participation in repurchase, securities lending and other collateralized programs.
Failure by us or any of our third party vendors to secure or appropriately handle personal, confidential or proprietary information could cause a loss of data or compromised data integrity, give rise to remediation or other expenses, expose us to liability under U.S. and international laws and regulations, and subject us to litigation, investigations, sanctions, and regulatory and law enforcement action, and result in reputational harm and loss of business, which could have a material adverse effect on our business, results of operations, financial condition and liquidity.
Failure by us or any of our third party vendors to secure or appropriately handle personal, confidential or proprietary information has in the past and could in the future cause a loss of data or compromised data integrity, give rise to remediation or other expenses, expose us to liability under U.S. and international laws and regulations, and subject us to litigation, investigations, sanctions, and regulatory and law enforcement action, and result in reputational harm and loss of business, which could have a material adverse effect on our business, results of operations, financial condition and liquidity.
Corebridge | 2023 Form 10-K 60 TABLE OF CONTENTS ITEM 1A | Risk Factors Furthermore, as a company with certain operations outside of the U.S. and with certain vendors, service providers and customers in non-U.S. jurisdictions, we are subject to myriad regulations that govern items such as sanctions, bribery and anti-money laundering, for which failure to comply could expose us to significant penalties.
Corebridge | 2024 Form 10-K 59 TABLE OF CONTENTS ITEM 1A | Risk Factors Furthermore, as a company with certain operations outside of the U.S. and with certain vendors, service providers and customers in non-U.S. jurisdictions, we are subject to myriad regulations that govern items such as sanctions, bribery and anti-money laundering, for which failure to comply could expose us to significant penalties.
In addition, we have provided and may provide financial guarantees and indemnities in connection with the businesses we have sold or may sell, as described in greater detail in Note 18 to the Consolidated Financial Statements.
In addition, we have provided and may provide financial guarantees and indemnities in connection with the businesses we have sold or may sell, as described in greater detail in Note 16 to the Consolidated Financial Statements.
Corebridge | 2023 Form 10-K 44 TABLE OF CONTENTS ITEM 1A | Risk Factors The insolvency of one or more of our reinsurance counterparties, or the inability or unwillingness of such reinsurers to make timely payments under the terms of our contracts or payments in an amount equal to our expected reinsurance recoverables, could have a material adverse effect on our business, results of operations, financial condition and liquidity.
Corebridge | 2024 Form 10-K 43 TABLE OF CONTENTS ITEM 1A | Risk Factors The insolvency of one or more of our reinsurance counterparties, or the inability or unwillingness of such reinsurers to make timely payments under the terms of our contracts or payments in an amount equal to our expected reinsurance recoverables, could have a material adverse effect on our business, results of operations, financial condition and liquidity.
As a result of changes in the fair value of the embedded derivative, we experience volatility in our GAAP net income. Corebridge | 2023 Form 10-K 45 TABLE OF CONTENTS ITEM 1A | Risk Factors Risks Relating to Our Investment Portfolio, Liquidity, Capital and Credit Gross unrealized losses on fixed maturity securities may be realized or result in future impairments.
As a result of changes in the fair value of the embedded derivative, we experience volatility in our GAAP net income. Corebridge | 2024 Form 10-K 44 TABLE OF CONTENTS ITEM 1A | Risk Factors Risks Relating to Our Investment Portfolio, Liquidity, Capital and Credit Gross unrealized losses on fixed maturity securities may be realized or result in future impairments.
Certain state and federal lawmakers, insurance regulators, including in Colorado and New York, and advisory groups are developing, or have developed, regulations or guidance applicable to insurance companies that use artificial intelligence, “big data” techniques, machine learning and predictive models in their operations.
Certain state and federal lawmakers, non-governmental organizations, insurance regulators, including in Colorado and New York, and advisory groups are developing, or have developed, regulations or guidance applicable to insurance companies that use artificial intelligence, “big data” techniques, machine learning and predictive models in their operations.
For example, regulators have shown continued interest in how organizations within the financial services industry, including insurance companies, are managing climate risk within their business operations and investment portfolios. Resulting actions by governments, regulators and international standard setters could lead to additional reporting obligations concerning investment holdings that are exposed to climate change-related risk.
For example, regulators have shown continued interest in how organizations within the financial services industry, including insurance companies, are managing ESG issues, such as climate risk within their business operations and investment portfolios. Resulting actions by governments, regulators and international standard setters could lead to additional reporting obligations concerning investment holdings that are exposed to climate change-related risk.
Our amended and restated certificate of incorporation provides that we renounce and waive any interest or expectancy in, or in being offered an opportunity to participate in, corporate opportunities that are from time to time presented to AIG, Blackstone or their respective officers, directors, agents, stockholders, members, partners, affiliates or subsidiaries, even if the opportunity is one that we might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so.
Our amended and restated certificate of incorporation and the Purchase Agreement provide that we renounce and waive any interest or expectancy in, or in being offered an opportunity to participate in, corporate opportunities that are from time to time presented to AIG, Blackstone, Nippon or their respective officers, directors, agents, stockholders, members, partners, affiliates or subsidiaries, even if the opportunity is one that we might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so.
Problems caused by, or occurring in relation to, our third-party providers’ systems and services, including those resulting from breakdowns or other disruptions in information security and technology services provided by our third-party providers and the other third-parties on which they rely, our inability to acquire third-party services on commercially acceptable terms, failure of a third-party provider to perform as anticipated or in compliance with applicable laws or regulations, inability of a third-party provider to provide the required volumes of services or third-party providers experiencing cyber-attacks, security breaches or data breaches continue to potentially, and could in the future materially and adversely affect our business, results of operations, financial condition and liquidity.
Problems caused by, or occurring in relation to, our third-party providers’ systems and services, including those resulting from breakdowns or other disruptions in information security and technology services provided by our third-party providers and the other third-parties on which they rely, our inability to acquire third-party services on commercially acceptable terms, failure of a third-party provider to perform as anticipated or in compliance with applicable laws or regulations, inability of a third-party provider to provide the required volumes of services or third-party providers experiencing cyber-attacks, security breaches or data breaches, have in the past adversely affected our business, operations, and finances and could in the future adversely and materially affect our business, results of operations, financial condition and liquidity.
Failure to comply with the requirements of being a public company could subject us to sanctions or investigations by the SEC, NYSE or other regulatory authorities and could potentially cause investors to lose confidence in the accuracy and completeness of our financial reports. Corebridge | 2023 Form 10-K 68 TABLE OF CONTENTS ITEM 1B | Unresolved Staff Comments
Failure to comply with the requirements of being a public company could subject us to sanctions or investigations by the SEC, NYSE or other regulatory authorities and could potentially cause investors to lose confidence in the accuracy and completeness of our financial reports. Corebridge | 2024 Form 10-K 65 TABLE OF CONTENTS ITEM 1B | Unresolved Staff Comments
Corebridge | 2023 Form 10-K 46 TABLE OF CONTENTS ITEM 1A | Risk Factors If our liquidity is insufficient to meet our needs, we may draw on our credit facilities or seek third-party financing, including through the capital markets, or other sources of liquidity, which may not be available or could be prohibitively expensive.
Corebridge | 2024 Form 10-K 45 TABLE OF CONTENTS ITEM 1A | Risk Factors If our liquidity is insufficient to meet our needs, we may draw on our credit facilities or seek third-party financing, including through the capital markets, or other sources of liquidity, which may not be available or could be prohibitively expensive.
Additionally, since we rely heavily on information technology and systems and on the integrity and timeliness of data to run our businesses and service our customers, any such security event and resulting compromise of systems or data may impede or interrupt our business operations and our ability to offer products to and service our customers, and otherwise may materially and adversely affect our business, results of operations, financial condition and liquidity.
Additionally, since we rely heavily on information technology and systems and on the integrity and timeliness of data to run our businesses and service our customers, any such security event and resulting compromise of systems or data has in the past and may in the future impede or interrupt our business operations and our ability to offer products to and service our customers, and otherwise may materially and adversely affect our business, results of operations, financial condition and liquidity.
A failure to identify and address these issues could cause a material adverse effect on the achievement of our strategies and potentially subject us to heightened regulatory scrutiny. Corebridge | 2023 Form 10-K 58 TABLE OF CONTENTS ITEM 1A | Risk Factors Business or asset acquisitions and dispositions may expose us to certain risks.
A failure to identify and address these issues could cause a material adverse effect on the achievement of our strategies and potentially subject us to heightened regulatory scrutiny. Corebridge | 2024 Form 10-K 57 TABLE OF CONTENTS ITEM 1A | Risk Factors Business or asset acquisitions and dispositions may expose us to certain risks.
Corebridge | 2023 Form 10-K 47 TABLE OF CONTENTS ITEM 1A | Risk Factors Our valuation of investments and derivatives involves the application of methodologies and assumptions to derive estimates that may differ from actual experience. It has been and may continue to be difficult to value certain of our investments or derivatives that are not actively traded.
Corebridge | 2024 Form 10-K 46 TABLE OF CONTENTS ITEM 1A | Risk Factors Our valuation of investments and derivatives involves the application of methodologies and assumptions to derive estimates that may differ from actual experience. It has been and may continue to be difficult to value certain of our investments or derivatives that are not actively traded.
Corebridge | 2023 Form 10-K 48 TABLE OF CONTENTS ITEM 1A | Risk Factors Under both securities lending and repurchase programs, defaults by third-party repurchase counterparties could result in the applicable counterparty failing to post cash collateral to us or complying with their other obligations under the relevant agreements.
Corebridge | 2024 Form 10-K 47 TABLE OF CONTENTS ITEM 1A | Risk Factors Under both securities lending and repurchase programs, defaults by third-party repurchase counterparties could result in the applicable counterparty failing to post cash collateral to us or complying with their other obligations under the relevant agreements.
The relevant authorities may not agree with our interpretation of these laws and regulations, including, for example, our implementation of new or revised requirements related to capital, accounting treatment or reserving such as those governing PBR, or with our policies and procedures adopted to address evolving industry practices or meet regulatory expectations.
The relevant authorities may not agree with our interpretation of these current laws and regulations, and any subsequent changes, including, for example, our implementation of new or revised requirements related to capital, accounting treatment or reserving such as those governing PBR, or with our policies and procedures adopted to address evolving industry practices or meet regulatory expectations.
For a further discussion of our loss reserves for future policy benefits, see Note 14 to the Consolidated Financial Statements. Reinsurance may not be available or economical and may not be adequate to protect us against losses. We purchase third-party reinsurance and we use reinsurance as part of our overall risk management strategy.
For a further discussion of our loss reserves for future policy benefits and market risk benefits, see Notes 12 and 14 to the Consolidated Financial Statements. Reinsurance may not be available or economical and may not be adequate to protect us against losses. We purchase third-party reinsurance and we use reinsurance as part of our overall risk management strategy.
Regulation” and “Business—Regulation—International Regulation.” New domestic or international laws and regulations, or new interpretations of current laws and regulations, may affect our ability to compete effectively.
Regulation” and “Business—Regulation—International Regulation.” New domestic or international laws and regulations, or new interpretations of current laws and regulations, may affect our ability to operate efficiently or compete effectively.
There is no assurance that our security measures, including information security and technology policies and standards, administrative, technical and physical controls, and other actions designed as preventative, will provide fully effective protection from such events.
There is no assurance that our security measures, including information security and technology policies and standards, administrative, technical and physical controls, and other actions designed as detective, preventative and responsive, will provide fully effective protection and recovery from such events.
Corebridge | 2023 Form 10-K 59 TABLE OF CONTENTS ITEM 1A | Risk Factors Risks Relating to Regulation Our business is heavily regulated. Our operations generally, and certain of our subsidiaries in particular, are subject to extensive and potentially conflicting laws, regulations, and regulatory guidance in the jurisdictions in which we operate.
Corebridge | 2024 Form 10-K 58 TABLE OF CONTENTS ITEM 1A | Risk Factors Risks Relating to Regulation Our business is heavily regulated. Our operations generally, and certain of our subsidiaries in particular, are subject to extensive and potentially conflicting laws, regulations, and regulatory guidance in the jurisdictions in which we operate.
For example, our products are subject to a complex and extensive array of domestic and foreign tax, securities, insurance and employee benefit plan laws and regulations, which are administered and enforced by a number of different governmental and self-regulatory authorities, including state insurance regulators, banking authorities and securities administrators, including the NYDFS, the SEC, the FINRA, the DOL and the IRS.
For example, our products are subject to a complex and extensive array of domestic and foreign tax, securities, insurance and employee benefit plan laws and regulations, which are administered and enforced by a number of different governmental and self-regulatory authorities, including state insurance regulators, federal banking authorities, securities administrators, the DOL and the IRS.
Corebridge | 2023 Form 10-K 43 TABLE OF CONTENTS ITEM 1A | Risk Factors Equity market declines and volatility may also influence policyholder behavior, adversely impacting the levels of surrenders and withdrawals, as well as the amounts withdrawn from our annuity, variable life and advisory and brokerage contracts.
Corebridge | 2024 Form 10-K 42 TABLE OF CONTENTS ITEM 1A | Risk Factors Equity market declines and volatility may also influence policyholder behavior, adversely impacting the levels of surrenders and withdrawals, as well as the amounts withdrawn from our annuity, variable life and advisory and brokerage contracts.
As another example, rules on defined benefit pension plan funding may reduce the likelihood of, or delay corporate plan sponsors in, terminating their plans or engaging in transactions to partially or fully transfer pension obligations. This could affect the mix of our PRT business and increase non-guaranteed funding products.
Additionally, rules on defined benefit pension plan funding may reduce the likelihood of, or delay corporate plan sponsors in, terminating their plans or engaging in transactions to partially or fully transfer pension obligations. This could affect the mix of our PRT business and increase non-guaranteed funding products.
In addition, hedging instruments we enter into may not effectively offset changes in economic values of the guarantees within certain of our annuity products or may otherwise be insufficient in relation to our obligations.
In addition, hedging instruments we enter into may not effectively offset changes in economic values of the guarantees within certain of our annuity products and life insurance products or may otherwise be insufficient in relation to our obligations.
Corebridge | 2023 Form 10-K 49 TABLE OF CONTENTS ITEM 1A | Risk Factors Risks Relating to Business and Operations Pricing for our products is subject to our ability to adequately assess risks and estimate losses. Our business is dependent on our ability to price our products effectively and charge appropriate fees and other policy charges.
Corebridge | 2024 Form 10-K 48 TABLE OF CONTENTS ITEM 1A | Risk Factors Risks Relating to Business and Operations Pricing for our products is subject to our ability to adequately assess risks and estimate losses. Our business is dependent on our ability to price our products effectively and charge appropriate fees and other policy charges.
Further, there are provisions that require minimum management fees to be paid by Corebridge Parent to Blackstone IM to the extent actual amounts charged to our insurance company subsidiaries are below specified minimum amounts and, if such agreements are terminated for reasons other than certain specified reasons, we could be required to continue paying investment advisory fees to Blackstone regardless of the termination.
As part of our arrangements with Blackstone, there are provisions that require minimum management fees to be paid by Corebridge Parent to Blackstone IM to the extent actual amounts charged to our insurance company subsidiaries are below specified minimum amounts and, if such agreements are terminated for reasons other than certain specified reasons, we could be required to continue paying investment advisory fees to Blackstone regardless of the termination.
System and network failures or outages could compromise our ability to perform business functions in a timely manner, which could harm our ability to conduct business, hurt our relationships with our business partners and customers and expose us to legal claims as well as regulatory investigations and sanctions, any of which could have a material adverse effect on our business, results of operations, financial condition and liquidity.
System and network failures or outages have in the past compromised and in the future may compromise our ability to perform business functions in a timely manner, which could harm our ability to conduct business, hurt our relationships with our business partners and customers and expose us to legal claims as well as regulatory investigations and sanctions, any of which could have a material adverse effect on our business, results of operations, financial condition and liquidity.
We utilize a combination of short-term and longer-term derivative instruments to have a laddered maturity of protection and reduce rollover risk during periods of market disruption or higher volatility. As of December 31, 2023, notional amounts on our derivative instruments totaled $243 billion.
We utilize a combination of short-term and longer-term derivative instruments to have a laddered maturity of protection and reduce rollover risk during periods of market disruption or higher volatility. As of December 31, 2024, notional amounts on our derivative instruments totaled $229 billion.
Changes in tax laws could reduce demand in the United States for life insurance and annuity contracts, which could reduce our income due to lower sales of these products or changes in customer behavior, including potential increased surrenders of in-force business.
Changes in tax laws could reduce demand in the United States for life insurance and annuity contracts, which could reduce our income due to lower sales of these products or changes in customer behavior, including potential increased surrenders of in-force business. Changes in tax laws could also impact the taxation of our operations.
Furthermore, certain of our business lines are subject to laws and regulations enacted by U.S. federal and state governments, foreign governments, data protection authorities or other jurisdictions or enacted by various self-regulatory organizations or exchanges relating to the privacy and security of personal data of clients, employees or others and the security of information systems and non-public information (“Privacy and Information Security Laws”).
Furthermore, certain of our internal and business operations are subject to laws and regulations enacted by U.S. federal and state governments, foreign governments, data protection authorities and various self-regulatory organizations and exchanges relating to the privacy and security of personal data of clients, employees or others and the security of information systems and non-public information (“Privacy and Information Security Laws”).
In general, AIG could pursue business interests or exercise its voting power as stockholder in ways that are detrimental to us but beneficial to themselves or to other companies in which they invest or with whom they have relationships.
In general, AIG, Nippon or Blackstone could pursue business interests or exercise its voting power as stockholders in ways that are detrimental to us but beneficial to themselves or to other companies in which they invest or with whom they have relationships.
Furthermore, the existence of the foregoing provisions, as well as the significant amount of Corebridge Parent common stock that AIG beneficially owns, could limit the price that investors might be willing to pay in the future for shares of our common stock.
Furthermore, the existence of the foregoing provisions, as well as the significant amount of Corebridge Parent common stock that AIG and Nippon beneficially own, could limit the price that investors might be willing to pay in the future for shares of our common stock.
Further, misconduct by employees, agents and representatives of our broker-dealer subsidiaries in the sale of our products could also result in violations of laws by us or our subsidiaries, regulatory sanctions and serious reputational or financial harm to us. The precautions we take to prevent and detect the foregoing activities may not be effective.
Further, misconduct by employees, agents and representatives of our broker-dealer subsidiaries in the sale of our products could also result in regulatory investigations, sanctions or violations of laws by us or our subsidiaries. The precautions we take to prevent and detect the foregoing activities may not be effective.
This is particularly acute with respect to unaffiliated distributors where we may not be able to directly monitor or control the manner in which our products are sold through third-party firms despite our risk assessment, training and compliance programs.
This risk is particularly acute with respect to the majority of our distribution which is through unaffiliated distributors where we are not able to directly monitor or control the manner in which our products are sold through third-party firms despite our risk assessment, training and compliance programs.
For example, equity market declines or volatility have and could, among other things, decrease the asset value of our annuity, variable life and advisory and brokerage contracts which, in turn, would reduce the amount of revenue we derive from fees, including mortality and expense fees, charged on those account and asset values.
For example, equity market declines or volatility have in the past and could in the future, among other things, decrease the asset value of our annuity, variable life and advisory and brokerage businesses which, in turn, would reduce the amount of revenue we derive from fees, including mortality and expense fees, and wealth management fees, charged on those account and asset values.
In the event of a natural disaster, a computer virus, unauthorized access, a terrorist attack, cyber-attack or other disruption, our systems and networks may be inaccessible to our employees, customers or business partners for an extended period of time, and we may be unable to meet our business obligations for an extended period of time if our data or systems are disabled, manipulated, destroyed or otherwise compromised.
In the event of a natural disaster, unauthorized access, a terrorist attack, malware, cyber-attacks or other disruptions, our systems and networks may be inaccessible to our employees, customers or business partners for an extended period of time, and we may be unable to meet our business obligations for an extended period of time if our data or systems are disabled, manipulated, destroyed or otherwise compromised.
Deferred income tax represents the tax effect of the differences between the book and tax basis of assets and liabilities. Deferred tax assets are assessed periodically by management to determine if they are realizable. As of December 31, 2023, we had net deferred tax assets, after valuation allowance, of $8.2 billion related to federal, foreign, and state and local jurisdictions.
Deferred income tax represents the tax effect of the differences between the book and tax basis of assets and liabilities. Deferred tax assets are assessed periodically by management to determine if they are realizable. As of December 31, 2024, we had net deferred tax assets, after valuation allowance, of $7.5 billion related to federal, foreign, and state and local jurisdictions.
Corebridge | 2023 Form 10-K 50 TABLE OF CONTENTS ITEM 1A | Risk Factors We are exposed to risks from our use of derivative instruments to hedge market risks associated with our liabilities.
Corebridge | 2024 Form 10-K 49 TABLE OF CONTENTS ITEM 1A | Risk Factors We are exposed to risks from our use of derivative instruments to hedge market risks associated with our liabilities.
The application of and compliance with the laws, regulations, and regulatory guidance applicable to our business, products, operations and legal entities may be subject to interpretation, evolving industry practices and regulatory expectations that could result in increased compliance costs.
The application of and compliance with the laws, regulations, and regulatory guidance applicable to our business, products, reinsurance transactions, operations and legal entities may be subject to interpretation, revisions, evolving industry practices and regulatory expectations that could result in increased compliance or operational costs.
As of December 31, 2023, $26.8 billion of reserves related to business written by us had been ceded to Fortitude Re under reinsurance transactions. These reserve balances are fully collateralized pursuant to the terms of the reinsurance transactions. Our subsidiaries continue to remain primarily liable to policyholders under the business reinsured with Fortitude Re.
As of December 31, 2024, $24.9 billion of reserves related to business written by us had been ceded to Fortitude Re under reinsurance transactions. These reserve balances are fully collateralized pursuant to the terms of the reinsurance transactions. Our subsidiaries continue to remain primarily liable to policyholders under the business reinsured with Fortitude Re.
Corebridge | 2023 Form 10-K 42 TABLE OF CONTENTS ITEM 1A | Risk Factors Adverse economic conditions may result from a variety of factors, including domestic and global economic and political developments, including elevated interest rates, plateauing or decreasing economic growth and business activity, recessions, social inflation, inflationary or deflationary pressures in developed economies, including the United States, pressures on the commercial real estate market, recent stress in the banking sector, uncertainty regarding the U.S. government’s debt limit or a potential U.S. government shutdown, civil unrest, geopolitical tensions or military action, such as the ongoing armed conflicts between Ukraine and Russia and in the Middle East , and new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains.
Corebridge | 2024 Form 10-K 41 TABLE OF CONTENTS ITEM 1A | Risk Factors Adverse economic conditions may result from a variety of factors, including domestic and global economic and political developments, including elevated interest rates, plateauing or decreasing economic growth and business activity, recessions, social inflation, inflationary or deflationary pressures in developed economies, including the United States, pressures on the commercial real estate market, recent stress in the banking sector, civil unrest, geopolitical tensions or military action, such as the ongoing armed conflicts between Ukraine and Russia and in the Middle East , and new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains.
Additionally, we expect that increased political and social focus on privacy and cybersecurity risks globally will increase the financial and reputational implications should we or any of our third-party suppliers experience a significant security incident or data breach.
Additionally, we expect that increased political and social focus on privacy and cybersecurity risks globally will increase the financial and reputational implications should we or any of our third-party suppliers experience a significant security incident or data breach or fail to comply with our data protection obligations.
Regulators in the jurisdictions in which we do business have adopted capital and liquidity standards, such as the RBC ratio formula used in the United States, applicable to insurers and reinsurers operating in their jurisdiction.
Regulators in the jurisdictions in which we do business, domestically and internationally, have adopted capital and liquidity standards, such as the RBC ratio formula used in the United States, and the Enhanced Capital Requirement used in Bermuda, applicable to insurers and reinsurers operating in their jurisdiction.
Corebridge | 2023 Form 10-K 41 TABLE OF CONTENTS ITEM 1A | Risk Factors In periods of rapidly increasing interest rates, or sustained periods of elevated interest rates such as the current interest rate environment, we may not be able to purchase, in a timely manner, the higher yielding investments needed to fund the higher crediting rates necessary to keep interest rate-sensitive products that we offer competitive.
Corebridge | 2024 Form 10-K 40 TABLE OF CONTENTS ITEM 1A | Risk Factors In periods of rapidly increasing interest rates or sustained periods of elevated interest rates, we may not be able to purchase, in a timely manner, the higher yielding investments needed to fund the higher crediting rates necessary to keep interest rate-sensitive products that we offer competitive.
The financial services industry, including the insurance industry in particular, is highly competitive. We compete in the United States with life and retirement insurance companies and other participants in related financial services fields. Overseas, our subsidiaries compete for business with global insurance groups, local companies and the foreign insurance operations of large U.S. insurers.
We compete in the United States with life and retirement insurance companies and other participants in related financial services fields. Overseas, our subsidiaries compete for business with global insurance groups, local companies and the foreign insurance operations of large U.S. insurers.
Consequently, persons considering an investment in our common stock (i.e., our voting securities) should take into consideration their ownership of AIG voting securities and consult their own legal advisors regarding such insurance holding company laws relating to the purchase and ownership of our common stock in light of their particular circumstances.
Because AIG’s common stock (i.e., its voting securities) trades on the NYSE, persons considering an investment in our common stock (i.e., our voting securities) should take into consideration their ownership of AIG voting securities and consult their own legal advisors regarding such insurance holding company laws relating to the purchase and ownership of our common stock in light of their particular circumstances.
If state insurance departments do not agree with our interpretations or if regulations change with respect to our ability to manage the capital impact of certain statutory reserve requirements, our statutory reserve requirements could increase, or our ability to take reserve credit for reinsurance transactions could be reduced or eliminated.
If state insurance departments do not agree with our interpretations, or if regulations change with respect to our ability to manage the capital impact of certain statutory reserve requirements, or if our domiciliary regulators do not approve of proposed intercompany reinsurance arrangement(s), our statutory reserve requirements could increase, or our ability to take reserve credit for reinsurance transactions could be reduced or eliminated.
While we currently hold a less than 3% interest in, and are entitled to a seat on the board of Fortitude Re Bermuda, the indirect parent of Fortitude Re, our ability to influence Fortitude Re’s operations is limited.
While we currently hold a less than 3% interest in, and are entitled to a seat on the board of FGH Parent, L.P., (“Fortitude Re Bermuda”), the indirect parent of Fortitude Re, our ability to influence Fortitude Re’s operations is limited.
This could arise as a result of the consolidation of plan sponsors (particularly in the healthcare industry), changes in law and regulations with respect to the investments that may be offered under certain plans, such as collective investment trusts, the redirection of assets to other providers who may provide more favorable terms or products, the provision of operational support by other providers which may be viewed as more optimal for the plan or changes in our business model.
This could arise as a result of the influence of third-party retirement plan consulting firms, the consolidation of plan sponsors (particularly in the healthcare industry), changes in law and regulations with respect to the investments that may be offered under certain plans, such as collective investment trusts, the redirection of assets to other providers who may provide more favorable terms or products, the provision of operational support by other providers which may be viewed as more favorable for the plan, changes in our business model, or allocation of plan services among subsidiaries.
In addition, federal and state securities laws and regulations apply to certain of our insurance products that are considered “securities” under such laws, including our variable annuity contracts, variable life insurance policies and the separate accounts that issue them, as well as our broker-dealer, investment advisor and mutual fund operations.
In addition, federal and state securities laws and regulations apply to certain of our insurance products that are considered “securities” under such laws, including our registered index-linked annuities, variable annuity contracts, variable life insurance policies and the separate accounts related to such products, as well as our broker-dealer, investment advisor, trustee and mutual fund operations.
We have made acquisitions in the past and may pursue further acquisitions or other strategic transactions, including reinsurance, dispositions and joint ventures, in the future. For example, in the fourth quarter of 2023 we completed the sale of Laya and we expect to complete the sale of UK Life in the first half of 2024.
We have made acquisitions in the past and may pursue further acquisitions or other strategic transactions, including reinsurance, dispositions and joint ventures, in the future. For example, in the fourth quarter of 2023 we completed the sale of Laya and the sale of UK Life closed in the second quarter of 2024.
In addition, adverse publicity, regulator scrutiny and pending investigations by regulators or law enforcement agencies involving AIG could negatively impact our reputation due to our relationship with AIG, which could materially and adversely affect our business, results of operations, financial condition and liquidity.
In addition, adverse publicity, regulator scrutiny and pending investigations by regulators or law enforcement agencies involving AIG, Nippon or Blackstone could negatively impact our reputation due to our relationship with AIG, Nippon or Blackstone, which could materially and adversely affect our business, results of operations, financial condition and liquidity. We and AIG have indemnification obligations to one another.
If our competitors offer products that are more attractive than ours or pay higher commission rates to the distribution partners than we do, these distribution partners could concentrate their efforts on selling our competitors’ products instead of ours.
In addition, substantially all of our distributors are permitted to sell our competitors’ products. If our competitors offer products that are more attractive than ours or pay higher commission rates to the distribution partners than we do, these distribution partners could concentrate their efforts on selling our competitors’ products instead of ours.
Corebridge | 2023 Form 10-K 54 TABLE OF CONTENTS ITEM 1A | Risk Factors There is no assurance that our security measures, including information security and technology policies and standards, administrative, technical and physical controls, and other actions by us or contracted third-parties designed as preventative, will provide fully effective protection from threats to our data, systems and networks, including malware and computer virus attacks, ransomware, unauthorized access, business e-mail compromise, misuse, denial-of-service attacks, ransomware, system failures and disruptions, both independently and through contracts with third parties.
There is no assurance that our security measures, including information security and technology policies and standards, administrative, technical and physical controls, and other actions by us or contracted third-parties designed as preventative, will provide fully effective protection from threats to our data, systems and networks, including malware and cyber-attacks, ransomware, unauthorized access, business e-mail compromise, misuse, denial-of-service attacks, ransomware, system failures and disruptions, both independently and through contracts with third parties.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur Chief Information Security Officer (“CISO”) provides oversight and direction for the Program and coordinates with other corporate functions and business segments to address all aspects of the Program, including recommending adjustments in response to changes in technology, internal or external threats, business processes, and regulatory or statutory requirements, and communicates the information security risk posture of Corebridge to the relevant internal individuals, committees and departments, including as further described below.
Biggest changeOur Chief Information Security Officer (“CISO”) provides oversight and direction for the Program, including recommending adjustments in response to changes in technology, internal and external threats, business operations, and regulatory and statutory requirements, coordinates with other corporate functions and business segments to address various aspects of the Program managed by technology and operational personnel, an d communicates Corebridge’s information security risk posture to relevant personnel, senior management and governing bodies, including as further described below.
The Program includes the following key elements: • Network, Systems, and Data Security – Corebridge deploys technical and organizational safeguards that are designed to protect Corebridge’s networks, systems, and data from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, software security assessments, and access and identity management controls; • Threat and Vulnerability Management –Corebridge maintains a threat and vulnerability management program that leverages threat intelligence to proactively identify, assess, and address cybersecurity risks.
The Program includes the following key elements: • Network, Systems, and Data Security – Corebridge deploys technical and organizational safeguards that are designed to protect Corebridge’s networks, systems, and data from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, software security assessments, data leak protection, and access and identity management controls; • Threat and Vulnerability Management –Corebridge maintains a threat and vulnerability management program that leverages threat intelligence to proactively identify, assess, and address cybersecurity risks.
Fora discussion regarding risks associated with cybersecurity threats, see “Risk Factors—Risks Relating to Business and Operations—We may be unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data” and “Risk Factors—Risks Relating to Business and Operations — Our risk management policies, standards and procedures may prove to be ineffective and leave us exposed to unidentified or unanticipated risk.”
For a discussion regarding risks associated with cybersecurity threats, see “Risk Factors—Risks Relating to Business and Operations—We may be unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data” and “Risk Factors—Risks Relating to Business and Operations — Our risk management policies, standards and procedures may prove to be ineffective and leave us exposed to unidentified or unanticipated risk.”
The CIO, CISO and business segment specific CIOs and CISOs also report to Corebridge’s subsidiary boards and the RCC as needed on material cyber risks and Corebridge’s security posture and information security strategy.
The CIO, COO, CISO and business segment specific CIOs and CISOs also report to Corebridge’s subsidiary boards and the RCC as needed on material cyber risks and Corebridge’s security and resiliency posture and information security strategy.
Corebridge | 2023 Form 10-K 69 TABLE OF CONTENTS ITEM 1B | Unresolved Staff Comments One of the main forums for reporting and escalating cybersecurity risks is the Corebridge Risk and Capital Committee (“RCC”), which is comprised of senior management personnel and led by our Chief Risk Officer (“CRO”), who is the head of our ERM function.
Corebridge | 2024 Form 10-K 66 TABLE OF CONTENTS ITEM 1B | Unresolved Staff Comments One of the main forums for reporting and escalating cybersecurity risks is the Corebridge Risk and Capital Committee (“RCC”), which is comprised of senior management personnel and led by our Chief Risk Officer (“CRO”), who is the head of our ERM function.
This program incorporates vulnerability scanning, risk-based remediation and mitigation, penetration testing, and threat response capabilities to safeguard our information assets and ensure business continuity; • Cybersecurity Incident Monitoring and Response – Corebridge has established and maintains incident response plans that address Corebridge’s response to a cybersecurity incident, utilizing a cross-functional approach; • Third Party Assessment and Oversight – Corebridge maintains a third-party risk management program to identify and manage risks from third-party service providers, including initial due diligence, an assessment of the service provider’s control environment and periodic re-assessments; and • Security Training and Awareness – Corebridge provides ongoing education and training to employees regarding information security threats, and their role and responsibility in detecting and responding to such threats.
This program incorporates vulnerability scanning, risk-based remediation and mitigation, penetration testing, and threat response capabilities to safeguard our information assets and ensure business continuity; • Cybersecurity Incident Monitoring and Response – Corebridge has established and maintains incident response plans that address Corebridge’s response to a cybersecurity incident, utilizing a cross-functional approach; • Third Party Assessment and Oversight – Corebridge maintains a third-party risk management program to identify and manage risks from third-party service providers, including initial due diligence, an assessment of the service provider’s control environment and periodic re-assessments; and • Security Training and Awareness – Corebridge provides ongoing education and training to employees regarding information security policies, procedures and best practices, including cyber threats, and their roles and responsibilities in identifying, reporting and responding to such threats.
The Program is evaluated on an ongoing basis to address the evolving cyber threat landscape and to comply with applicable legal and regulatory obligations. See “Business—Regulation—U.S. Regulation—Privacy, Data Protection and Cybersecurity” for further discussion.
The Program is evaluated on an ongoing basis to address the evolving cyber threat landscape and to comply with applicable legal and regulatory obligations. See “Business—Regulation—U.S. Regulation—Privacy and Cybersecurity” and Business—Regulation—International Regulation—Privacy and Cybersecurity for further discussion.
In addition to the foregoing, we are implementing a practice whereby Corebridge’s Chief Information Officer (“CIO”) and/or CISO discuss Corebridge’s approach to cybersecurity risk management directly with the Board of Directors at least once a year.
In addition to the foregoing, we have implemented a practice whereby Corebridge’s Chief Information Officer (“CIO”), Chief Operations Officer (“COO”) and/or CISO report Corebridge’s approach to technology, resiliency and cybersecurity risk management directly to the Board of Directors at least once a year.
These processes will enable our operations and risk management functions that monitor cybersecurity risks and examine control performance to report and escalate cybersecurity risks to senior management and the Board of Directors, as appropriate.
Board Oversight and Governance We have implemented processes, to help facilitate oversight of information security risks by Corebridge’s senior management and Board of Directors. These processes enable our operations and risk management functions that monitor cybersecurity risks and examine control performance to report and escalate cybersecurity risks to our senior management and the Board of Directors, as appropriate.
Previously he served in various technology executive management roles at MetLife, Inc., including Senior Vice President and Chief Information Officer for its U.S. business and Senior Vice President of U.S. Application Development.
Our CIO also has over 25 years of experience and has served as CIO of Corebridge since 2020 and Executive Vice President since February 2022. Previously he served in various technology executive management roles at MetLife, Inc., including Senior Vice President and Chief Information Officer for its U.S. business and Senior Vice President of U.S. Application Development.
He previously served in numerous information security management roles, including as CISO, at various financial sector organizations. Our CIO also has over 25 years of experience and has served as CIO of Corebridge since 2020 and Executive Vice President since February 2022.
Our CISO has over 25 years of information security and risk management experience and has served in his current role since joining Corebridge in 2021. He previously served in numerous information security management roles, including as CISO, at various financial sector organizations.
While there have been no material cybersecurity incidents that have affected Corebridge for the period covered by this annual report, on June 16, 2023, our vendor, Pension Benefit Information, LLC (“PBI”), notified us that data specific to Corebridge customers had been compromised in a security incident that PBI experienced targeting a zero-day vulnerability in PBI’s instance of the MOVEit Transfer Application, a managed file transfer software used by thousands of organizations.
On June 16, 2023, one of our former vendors, PBI, notified us that data specific to Corebridge customers had been compromised in a security incident that PBI experienced targeting a zero-day vulnerability in PBI’s instance of the MOVEit Transfer Application, a managed file transfer software used by thousands of organizations.
The Program is informed by industry standards and frameworks and is designed to protect the confidentiality, integrity, and availability of Corebridge’s information assets and systems that store, process, or transmit material non-public information. Where appropriate, we also engage third-parties to evaluate our Program and our cybersecurity risk management and to provide operational support for the Program.
The Program is informed by industry standards and frameworks and is designed to protect the confidentiality, integrity, and availability of Corebridge’s information assets and systems that store, process, or transmit material non-public information. The Program is managed day-to-day by technology, information security, and operational personnel.
Under the cybersecurity incident response plan and its protocols, incidents are responded to by multidisciplinary teams and are further escalated to the attention of senior management and our Board of Directors when applicable.
Corebridge’s cyber incident response plans and procedures establish escalation protocols in connection with a potential cybersecurity incident, pursuant to which incidents are responded to by multidisciplinary teams and are further escalated to the attention of senior management and our Board of Directors when applicable. Corebridge’s CISO reports to our CIO.
While we remain reliant on AIG for the provision of certain of these services, as part of our separation from, and in cooperation with, AIG, we have developed and are in the process of implementing an Information Security Program for Corebridge (the “Program”) that includes, among other things, conducting periodic risk assessments designed to evaluate potential security threats, to detect potential vulnerabilities, and to mitigate identified security risks.
Item 1C. | Cybersecurity CYBERSECURITY RISK MANAGEMENT We have developed and implemented an Information Security Program for Corebridge (the “Program”) that includes, among other things, conducting periodic risk assessments designed to evaluate potential security threats, to detect potential vulnerabilities, and to mitigate identified security risks.
While we continue to measure the impact of this incident, including certain remediation expenses and other potential liabilities, we do not currently believe this incident will have a material adverse effect on our business, operations, or financial results.
We do not currently believe this incident or pending litigation arising from this incident will have a material adverse effect on our business, operations, or financial results.
Removed
Item 1C. | Cybersecurity CYBERSECURITY RISK MANAGEMENT We have historically been dependent on AIG’s risk management, cybersecurity and privacy policies, standards and procedures to identify, monitor, mitigate and communicate to us and our Board of Directors the cybersecurity risks to which we are exposed and manage.
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W here appropriate, we also engage third-parties to provide operational support for the Program and to evaluate our Program and our cybersecurity risk management.
Removed
As a result, during 2023, we primarily relied on AIG to provide cybersecurity risk management and cybersecurity services to us pursuant to the Transition Services Agreement with AIG.
Added
There have been no cybersecurity incidents that have had a material adverse effect on our business, operations, or financial results for the period covered by this annual report.
Removed
Board Oversight and Governance As discussed above, we have historically relied upon AIG to provide oversight of cybersecurity risk management and cybersecurity services that AIG provides to us pursuant to the Transition Services Agreement.
Added
We continue to monitor potential liabilities arising from this incident, including as related to a pending multi-district litigation ( IN RE: MOVEit Customer Data Security Breach Litigation , 1:23-md-03083-ADB) in which Corebridge Financial, Inc. and American General Life Insurance Co. have been named as defendants.
Removed
In connection with our separation from AIG we are in the process of implementing certain processes, including training and reporting, to help facilitate oversight of information security risks by Corebridge’s senior management and Board of Directors.
Removed
Corebridge’s CISO reports to our CIO and is principally responsible for overseeing the Program, in partnership with other business leaders across Corebridge including the respective business segments’ CIO, CISO and Chief Technology Officer. Our CISO has over 25 years of information security and risk management experience and has served in his current role since joining Corebridge in 2021.
Removed
As one of our new processes, we have implemented a cybersecurity incident response plan that sets forth a specific framework for responding to and managing potential and actual cybersecurity incidents, provides guidance on the roles of, and interactions with, various departments within Corebridge, and defines certain processes and procedures for cybersecurity incident response and management.
Removed
Our cybersecurity incident response plan and procedures also establish escalation protocols in connection with a potential cybersecurity incident. These protocols vary depending upon the specific factors involved, including the materiality of an incident, the related harms and risks associated therewith, any undertakings required to mitigate and remediate any such incident and any corresponding legal or regulatory actions.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. | Legal Proceedings For information regarding certain legal proceedings pending against us, see Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K . See ‘‘Risk Factors—Risks Relating to Business and Operations—We may be subject to significant legal, governmental, or regulatory proceedings.’’
Biggest changeItem 3. | Legal Proceedings For information regarding certain legal proceedings pending against us, see Note 16 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K . See ‘‘Risk Factors—Risks Relating to Business and Operations—We may be subject to significant legal, governmental, or regulatory proceedings.’’

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeDuring the three months ended December 31, 2023, Corebridge Parent repurchased approximately 11.8 million shares of Corebridge Common Stock, par value $0.01 per share for an aggregate purchase price of $252 million, pursuant to the share repurchase program under which Corebridge Parent may, from time to time, purchase up to $1.0 billion of its common stock but is not obligated to purchase any particular number of shares.
Biggest changeDuring the three months ended December 31, 2024, Corebridge Parent repurchased approximately 12.9 million shares of Corebridge Common Stock, par value $0.01 per share, for an aggregate purchase price of $398 million, pursuant to the share repurchase program. As of February 11, 2025, approximately $2.5 billion remained under the share repurchase program authorizations.
In addition, certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans, including the share repurchase plan Corebridge Parent adopted on December 11, 2023, which, unless extended expires on February 15, 2024.
In addition, certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans, including the share repurchase plan Corebridge Parent adopted on November 14, 2024, which, unless extended expires on February 14, 2025.
As of February 8, 2024, there were three shareholders of record, which differs from the number of beneficial owners of our common stock.
As of February 11, 2025, there were four shareholders of record, which differs from the number of beneficial owners of our common stock.
Corebridge | 2023 Form 10-K 71 TABLE OF CONTENTS ITEM 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Performance Graph The graph and table below present the cumulative total shareholder return on Corebridge common stock relative to the performance of the S&P’s 500 Index, the S&P Insurance Index and the S&P Financials Index, respectively, between the closing market price at the end of September 15, 2022 (the date our common stock commenced regular way trading on the NYSE) and December 31, 2023.
The graph and table below present the cumulative total shareholder return on Corebridge common stock relative to the performance of the S&P’s 500 Index, the S&P Insurance Index and the S&P Financials Index, respectively, between the closing market price at the end of September 15, 2022 (the date our common stock commenced regular way trading on the NYSE) and December 31, 2024.
Purchases of Equity Securities by the Issuer The following table provides information about purchases made by or on behalf of Corebridge Parent or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934) of Corebridge Common Stock during the three months ended December 31, 2023: Period Total Number of Shares Repurchased Average Price Paid per Share* Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) 10/01/23 through 10/31/23 2,711,115 $ 20.41 2,711,115 $ 699 11/01/23 through 11/30/23 1,224,857 20.38 1,224,857 674 12/01/23 through 12/31/23 7,888,029 21.72 7,888,029 502 Total 11,824,001 $ 21.31 11,824,001 $ 502 * Excludes excise tax of $2.5 million due to the Inflation Reduction Act of 2022 for the three months ended December 31, 2023.
Purchases of Equity Securities by the Issuer The following table provides information about purchases made by or on behalf of Corebridge Parent or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934) of Corebridge Common Stock during the three months ended December 31, 2024: Period Total Number of Shares Repurchased Average Price Paid per Share* Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) 10/01/24 through 10/31/24 5,528,528 $ 30.60 5,528,528 $ 939 11/01/24 through 11/30/24 3,060,384 31.29 3,060,384 843 12/01/24 through 12/31/24 4,328,700 30.75 4,328,700 710 Total 12,917,612 $ 30.81 12,917,612 $ 710 * Excludes excise tax of $4.0 million due to the Inflation Reduction Act of 2022 for the three months ended December 31, 2024.
For instance, on December 18, 2023, we purchased an aggregate of approximately $150 million of shares from AIG and Argon in a privately negotiated transaction.
For instance, on August 7, 2024, we purchased an aggregate of approximately $200 million of shares from AIG in a privately negotiated transaction.
As of December 31, 2023, approximately $502 million of capacity to repurchase common stock remained under the share repurchase program authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise.
The authorization for the share repurchase program may be terminated, increased or decreased by the Board of Directors at any time. Shares may be repurchased from time to time in the open market, through private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise.
Sep 15, 2022 Sep 30, 2022 Dec 31, 2022 Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Corebridge Financial, Inc. $ 100.00 $ 94.98 $ 99.03 $ 80.18 $ 92.89 $ 105.17 $ 123.50 S&P 500 $ 100.00 $ 91.95 $ 98.90 $ 106.32 $ 115.61 $ 111.83 $ 124.90 S&P 500 Financials $ 100.00 $ 91.28 $ 103.70 $ 97.94 $ 103.16 $ 102.00 $ 116.30 S&P 500 Insurance $ 100.00 $ 93.61 $ 109.12 $ 103.46 $ 108.06 $ 111.73 $ 119.23
Sep 15, 2022 Dec 31, 2022 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Corebridge Financial, Inc. $ 100.00 $ 99.03 $ 123.50 $ 165.29 $ 168.90 $ 170.56 $ 176.40 S&P 500 $ 100.00 $ 98.90 $ 124.90 $ 138.09 $ 144.00 $ 152.48 $ 156.15 S&P 500 Financials $ 100.00 $ 103.70 $ 116.30 $ 130.79 $ 128.13 $ 141.79 $ 151.84 S&P 500 Insurance $ 100.00 $ 109.12 $ 119.23 $ 139.17 $ 135.85 $ 154.59 $ 151.20
Added
On May 4, 2023, our Board of Directors authorized a $1.0 billion share repurchase program. On April 30, 2024, our Board of Directors authorized an additional $2.0 billion increase in the share repurchase amount under the share repurchase program.
Added
On February 11, 2025, our Board of Directors authorized an additional $2.0 billion increase in the share repurchase amount under the share repurchase program. Under this program, Corebridge Parent may, from time to time, purchase shares of Corebridge Parent common stock but is not obligated to purchase any particular number of shares.
Added
Corebridge | 2024 Form 10-K 68 TABLE OF CONTENTS ITEM 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Performance Graph The following information is not deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C under the Exchange Act or the liabilities of Section 18 of the Exchange Act, and will not be deemed to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporates it by reference into such filing.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeFair Value Measurements (in millions) Fair Value Beginning of Period Net Realized and Unrealized (Gains) Losses Included in Income Other Comprehensive (Income) Loss Purchases, Sales, Issuances and Settlements, Net Gross Transfers In Gross Transfers Out Other Fair Value End of Period Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period Changes in Unrealized Gain (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period Liabilities: Policyholder contract deposits $ 5,367 $ 1,464 $ — $ 1,111 $ — $ — $ — $ 7,942 $ (733) $ — Derivative liabilities, net: Interest rate contracts (303) (88) — (157) — — 99 (449) 33 — Foreign exchange contracts — — — — — — — — — — Equity contracts (267) (389) — (537) — — 432 (761) 438 — Credit contracts — — — — — — — — — — Other contracts (14) (61) — 65 — — — (10) 62 — Total derivative liabilities, net (b) (584) (538) — (629) — — 531 (1,220) 533 — Fortitude Re funds withheld payable 1,262 1,734 — (814) — — — 2,182 (721) — Debt of consolidated investment entities 6 1 — (7) — — — — — — Total (c) $ 6,051 $ 2,661 $ — $ (339) $ — $ — $ 531 $ 8,904 $ (921) $ — (in millions) Fair Value Beginning of Period Net Realized and Unrealized Gains (Losses) Included in Income Other Comprehensive Income (Loss) Purchases, Sales, Issuances and Settlements, Net Gross Transfers In Gross Transfers Out Other (d) Fair Value End of Period Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period Changes in Unrealized Gain (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period Year Ended December 31, 2022 Assets: Bonds available-for-sale: Obligations of states, municipalities and political subdivisions $ 1,395 $ 1 $ (525) $ (95) $ 40 $ (11) $ — $ 805 $ — $ (221) Corporate debt 1,907 17 (192) (159) 911 (516) — 1,968 — (174) RMBS 7,595 322 (986) (834) 7 (434) — 5,670 — (610) CMBS 1,072 9 (140) 38 45 (306) — 718 — (115) CLO 3,038 (31) (163) (105) 1,305 (1,673) (701) 1,670 — (76) ABS 7,400 131 (1,417) 3,283 218 (20) — 9,595 — (1,369) Total bonds available-for-sale 22,407 449 (3,423) 2,128 2,526 (2,960) (701) 20,426 — (2,565) Other bond securities: Obligations of states, municipalities and political subdivisions — — — — — — — — — — Corporate debt 134 (5) — 158 335 (205) — 417 (2) — RMBS 106 (23) — 24 — — — 107 (22) — CMBS 33 (5) — — — — — 28 (4) — CLO 149 1 — (131) 70 (78) — 11 (5) — ABS 205 (117) — 653 — — — 741 (132) — Total other bond securities 627 (149) — 704 405 (283) — 1,304 (165) — Equity securities 2 (1) — 23 2 — — 26 (1) — Other invested assets 1,892 313 (22) (195) 24 (180) — 1,832 329 — Total (a) $ 24,928 $ 612 $ (3,445) $ 2,660 $ 2,957 $ (3,423) $ (701) $ 23,588 $ 163 $ (2,565) Corebridge | 2023 Form 10-K 189 TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 5.
Biggest changeFair Value Measurements CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS The following tables present changes during the years ended December 31, 2024 and 2023 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheets at December 31, 2024 and 2023: (in millions) Fair Value Beginning of Year Net Realized and Unrealized Gains (Losses) Included in Income Other Comprehensive Income (Loss) Purchases, Sales, Issuances and Settlements, Net Gross Transfers In Gross Transfers Out Other Fair Value End of Year Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year Year Ended December 31, 2024 Assets: Bonds available-for-sale: Obligations of states, municipalities and political subdivisions $ 844 $ (1) $ (72) $ (4) $ — $ (22) $ — $ 745 $ — $ (77) Corporate debt 1,357 12 (2) (94) 1,057 (496) — 1,834 — (34) RMBS 5,854 290 31 155 21 (304) (2) 6,045 — 30 CMBS 608 1 95 (180) 252 (155) — 621 — 22 CLO 1,843 17 28 553 41 (320) — 2,162 — 29 ABS 12,906 391 305 3,282 1,161 (479) — 17,566 — 272 Total bonds available-for-sale 23,412 710 385 3,712 2,532 (1,776) (2) 28,973 — 242 Other bond securities: Obligations of states, municipalities and political subdivisions 1 — — — — — — 1 — — Corporate debt 167 15 — 10 20 (3) — 209 10 — RMBS 107 5 — (11) — (3) — 98 3 — CMBS 17 1 — (4) — — — 14 1 — CLO 69 (2) — 7 — (16) 1 59 — — ABS 962 66 — 223 21 (112) — 1,160 29 — Total other bond securities 1,323 85 — 225 41 (134) 1 1,541 43 — Equity securities 42 1 — 5 — — (7) 41 — — Other invested assets 1,850 (49) (15) 13 — (136) (16) 1,647 (56) — Total (a) $ 26,627 $ 747 $ 370 $ 3,955 $ 2,573 $ (2,046) $ (24) $ 32,202 $ (13) $ 242 (in millions) Fair Value Beginning of Year Net Realized and Unrealized (Gains) Losses Included in Income Other Comprehensive (Income) Loss Purchases, Sales, Issuances and Settlements, Net Gross Transfers In Gross Transfers Out Other Fair Value End of Year Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year Liabilities: Policyholder contract deposits $ 7,942 $ 859 $ — $ 614 $ — $ — $ — $ 9,415 $ 1,472 $ — Derivative liabilities, net: Interest rate contracts (449) (170) — (84) — — 339 (364) 255 — Equity contracts (761) (38) — 141 — — 13 (645) (107) — Other contracts (10) (45) — 44 — — — (11) 44 — Total derivative liabilities, net (b) (1,220) (253) — 101 — — 352 (1,020) 192 — Fortitude Re funds withheld payable 2,182 518 — (477) — — — 2,223 531 — Total (c) $ 8,904 $ 1,124 $ — $ 238 $ — $ — $ 352 $ 10,618 $ 2,195 $ — Corebridge | 2024 Form 10-K 172 TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 4.
This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase; • General operating and other expenses include expenses associated with conducting our business, including salaries, other employee-related compensation and other operating expenses such as professional services or travel; • Change in the fair value of market risk benefits, net represents the changes in fair value of MRBs contained within certain insurance contracts (excluding the impact of changes in our own credit risk), including attributed fees, along with the changes in the fair value of derivatives that economically hedge MRBs.
This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase; • General operating expenses include expenses associated with conducting our business, including salaries, other employee-related compensation and other operating expenses such as professional services or travel; • Change in the fair value of market risk benefits, net represents the changes in fair value of MRBs contained within certain insurance contracts (excluding the impact of changes in our own credit risk), including attributed fees, along with the changes in the fair value of derivatives that economically hedge MRBs.
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.
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.
We believe this measure is useful to investors as it eliminates the asymmetrical impact resulting from changes in fair value of our available-for-sale securities portfolio for which there is largely no offsetting impact for certain related insurance liabilities that are not recorded at fair value with changes in fair value recorded through OCI.
We believe this measure is useful to investors as it eliminates the asymmetrical impact resulting from changes in fair value of our available-for-sale securities portfolio for which there is largely no offsetting impact for certain related insurance liabilities that are not recorded at fair value with changes in fair value recorded through OCI.
It also eliminates asymmetrical impacts where our own credit non-performance risk is recorded through OCI. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets since these fair value movements are economically transferred to Fortitude Re.
It also eliminates asymmetrical impacts where our own credit non-performance risk is recorded through OCI. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re’s funds withheld assets since these fair value movements are economically transferred to Fortitude Re.
Net realized gains (losses) on Fortitude Re funds withheld assets primarily reflect changes in the valuation of the modified coinsurance and funds withheld assets. Increases in the valuation of these assets result in losses to Corebridge as the appreciation on the assets must under those reinsurance arrangements be transferred to Fortitude Re.
Net realized gains (losses) on Fortitude Re funds withheld assets primarily reflect changes in the valuation of the modified coinsurance and funds withheld assets. Increases in the valuation of these assets result in losses to Corebridge as the appreciation on the assets under those reinsurance arrangements must be transferred to Fortitude Re.
In addition to risk-mitigating features in our variable annuity product design, we have an economic hedging program designed to manage market risk from GMWBs, including exposures to changes in interest rates, equity prices, credit spreads and volatility.
In addition to risk-mitigating features in our variable annuity product design, we have an economic hedging program designed to manage market risk from GMWBs, including exposures to changes in interest rates, equity prices, credit spreads and volatility.
The hedging program includes all in-force GMWB policies and utilizes derivative instruments, including but not limited to equity options, futures contracts and interest rate swap and option contracts, as well as fixed maturity securities.
The hedging program includes all in-force GMWB policies and utilizes derivative instruments, including but not limited to equity options, futures contracts and interest rate swap and option contracts, as well as fixed maturity securities.
The following table presents the credit ratings of Corebridge Parent as of the date of this filing: Hybrid Junior Subordinated Long-Term Debt Senior Unsecured Long-Term Debt Moody’s (a) S&P (b) Fitch (c) Moody’s (a) S&P (b) Fitch (c) Baa3 (Stable) BBB- (Stable) BBB- (Stable) Baa2 (Stable) BBB+ (Stable) BBB+ (Stable) (a) Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within the rating categories.
The following table presents the credit ratings of Corebridge Parent as of the date of this filing: Senior Unsecured Long-Term Debt Hybrid Junior Subordinated Long-Term Debt Moody’s (a) S&P (b) Fitch (c) Moody’s (a) S&P (b) Fitch (c) Baa2 (Stable) BBB+ (Stable) BBB+ (Stable) Baa3 (Stable) BBB- (Stable) BBB- (Stable) (a) Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within the rating categories.
The index crediting feature of these products results in the recognition of an embedded derivative that is required to be bifurcated from the host contract and carried at fair value with changes in the fair value of the liabilities recorded in Net realized gains (losses).
The index crediting feature of these products results in the recognition of an embedded derivative that is required to be bifurcated from the host contract and carried at fair value with changes in the fair value of the liabilities recorded in Net realized gains (losses).
Option pricing models are used to estimate fair value, taking into account assumptions for future index growth rates, volatility of the index, future interest rates, and our ability to adjust the participation rate and the cap on index credited rates in light of market conditions and policyholder behavior assumptions.
Option pricing models are used to estimate fair value, taking into account assumptions for future index growth rates, volatility of the index, future interest rates, and our ability to adjust the participation rate and the cap on index credited rates in light of market conditions and policyholder behavior assumptions.
However, a policyholder can generally only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e., the features are generally mutually exclusive (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during his or her lifetime).
However, a policyholder can generally only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e., the features are generally mutually exclusive (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during his or her lifetime).
Underwriting margin — for our Life Insurance segment includes premiums, policy fees, other income, net investment income, less interest credited to policyholder account balances and policyholder benefits and excludes the annual assumption update.
Underwriting margin — for our Life Insurance segment includes premiums, policy fees, other income, net investment income, less interest credited to policyholder account balances and policyholder benefits and excludes the annual assumption update.
Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI.
Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI.
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.
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.
Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through “Change in the fair value of MRBs, net” and are excluded from APTOI.
Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through “Change in the fair value of MRBs, net” and are excluded from APTOI.
Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI. Other adjustments: Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities.
Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI. Other adjustments: Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities.
The excluded adjustments include, as applicable: • restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization; • non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles; • separation costs; • non-operating litigation reserves and settlements; • loss (gain) on extinguishment of debt, if any; • losses from the impairment of goodwill, if any; and • income and loss from divested or run-off business, if any.
The excluded adjustments include, as applicable: • restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization; • non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles; • separation costs; • non-operating litigation reserves and settlements; • loss (gain) on extinguishment of debt, if any; • losses from the impairment of goodwill, if any; and • income and loss from divested or run-off business, if any.
Fair Value Measurements FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis, generally quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.
FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis, generally quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.
NET INVESTMENT INCOME Net investment income represents income primarily from the following sources: • Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. • Dividend income from common and preferred stocks. • Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. • Earnings from alternative investments. • Prepayment premiums.
Investments NET INVESTMENT INCOME Net investment income represents income primarily from the following sources: • Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. • Dividend income from common and preferred stocks. • Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. • Earnings from alternative investments. • Prepayment premiums.
When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.
When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.
PLEDGED INVESTMENTS Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities.
Investments PLEDGED INVESTMENTS Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities.
This allowance reflects the risk of loss, even when that risk is remote, and reflects losses expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions.
This allowance reflects the risk of loss, even when that risk is remote, and reflects losses expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions.
Effective March 31, 2023, AGL recaptured term life reserves of $1 billion issued from 2017 to 2019 from AGC subject to Regulation XXX and ceded approximately $2 billion of such statutory reserves to the same unaffiliated reinsurer under an amendment to the July 1, 2016 agreement.
Effective March 31, 2023, AGL recaptured term life reserves of $1 billion issued from 2017 to 2019 from AGC subject to Regulation XXX and ceded approximately $2 billion of such statutory reserves to the same unaffiliated reinsurer under an amendment to the July 1, 2016 agreement.
Effective September 30, 2023, AGL recaptured universal life reserves of $1 billion issued from 2017 to 2019 from AGC subject to Guideline AXXX and ceded approximately $2 billion of such statutory reserves to the same unaffiliated reinsurer under an amendment to the July 1, 2016 agreement.
Effective September 30, 2023, AGL recaptured universal life reserves of $1 billion issued from 2017 to 2019 from AGC subject to Guideline AXXX and ceded approximately $2 billion of such statutory reserves to the same unaffiliated reinsurer under an amendment to the July 1, 2016 agreement.
Derivatives and Hedge Accounting Interest rate, currency and equity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are generally reflected in income, except in certain situations in which hedge accounting is applied and unrealized gains and losses are reflected in AOCI.
Interest rate, currency and equity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are generally reflected in income, except in certain situations in which hedge accounting is applied and unrealized gains and losses are reflected in AOCI.
For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract.
For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract.
Market Risk Benefits Changes in the fair value of Market Risk Benefits, net represents changes in the fair value of market risk benefit liabilities and assets (with the exception of our own credit risk changes), and includes attributed rider fees and benefits, net of changes in the fair value of derivative instruments and fixed maturity securities that are used to economically hedge market risk from the variable annuity GMWB riders.
Changes in the fair value of Market Risk Benefits, net represents changes in the fair value of market risk benefit liabilities and assets (with the exception of our own credit risk changes), and includes attributed rider fees and benefits, net of changes in the fair value of derivative instruments and fixed maturity securities that are used to economically hedge market risk from the variable annuity GMWB riders.
The alternative base rate is equal to the highest of (a) the New York Federal Reserve Bank Rate plus 0.50%, (b) the rate of interest in effect as quoted by The Wall Street Journal as the “Prime Rate” in the United States and (c) Term SOFR plus a credit spread adjustment of 0.100% plus an additional 1.00%.
The alternative base rate is equal to the highest of (a) the New York Federal Reserve Bank Rate plus 0.50%, (b) the rate of interest in effect as quoted by The Wall Street Journal as the “Prime Rate” in the United States and (c) Term SOFR plus a credit spread adjustment of 0.100% plus an additional 1.00%.
The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.
The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.
See accompanying Notes to Condensed Financial Information of Registrant.
See accompanying Notes to Condensed Financial Information of Registrant.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Share-Based Compensation Plans RSU Conversion All AIG RSUs that were held by our active employees on September 14, 2022 (the pricing date for the IPO) were converted into RSUs linked to the performance of CRBG Stock (“Corebridge RSUs”), on terms and conditions that are substantially the same as the corresponding AIG RSUs, with the number of AIG RSUs adjusted in a manner intended to preserve their intrinsic value as of immediately before and immediately following the conversion (subject to rounding).
Share-Based Compensation Plans All AIG RSUs that were held by our active employees on September 14, 2022 (the pricing date for the IPO) were converted into RSUs linked to the performance of CRBG Stock (“Corebridge RSUs”), on terms and conditions that are substantially the same as the corresponding AIG RSUs, with the number of AIG RSUs adjusted in a manner intended to preserve their intrinsic value as of immediately before and immediately following the conversion (subject to rounding).
The effective tax rate on income from operations differs from the statutory tax rate of 21% primarily due to tax benefits of $95 million of associated with the establishment of outside basis as a result of the held-for-sale designation of Laya and AIG Life, $67 million associated with tax adjustments related to prior year returns, $59 million dividends received deduction, $52 million reclassifications from accumulated other comprehensive income to income from operations related to the disposal of available-for-sale securities, and $40 million adjustments to deferred tax assets.
The effective tax rate on income from operations differs from the statutory tax rate of 21.0% primarily due to tax benefits of $95 million of associated with the establishment of outside basis as a result of the held-for-sale designation of Laya and AIG Life, $67 million associated with tax adjustments related to prior year returns, $59 million dividends received deduction, $52 million reclassifications from accumulated other comprehensive income to income from operations related to the disposal of available-for-sale securities, and $40 million adjustments to deferred tax assets.
In the modco, the investments supporting the reinsurance agreements, which consist mostly of available-for-sale securities, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., Corebridge), thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date.
In the modco arrangement, the investments supporting the reinsurance agreements, which consist mostly of available-for-sale securities, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., Corebridge), thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date.
Fair Value Measurements When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models internally or via our third party asset managers.
When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models internally or via our third party asset managers.
Derivatives and Hedge Accounting During 2022, we designated certain interest rate swaps entered into with related parties as cash flow hedges of forecasted coupon payments associated with anticipated long-term debt issuances. For the year ended December 31, 2022, we recognized derivative gains of $223 million in AOCI and reclassified $21 million into interest expense.
Derivatives and Hedge Accounting In 2022 we designated certain interest rate swaps entered into with related parties as cash flow hedges of forecasted coupon payments associated with anticipated long-term debt issuances. For the year ended December 31, 2022, we recognized derivative gains of $223 million in AOCI and reclassified $21 million into Interest expense.
It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented.
It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming loans were not significant for all periods presented.
However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangement and the appreciation (depreciation) of the assets is the primary driver of the comprehensive income reflected above. REINSURANCE SECURITY Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries.
However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangement and the appreciation (depreciation) of the assets is the primary driver of the comprehensive income (loss) reflected above. REINSURANCE SECURITY Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries.
Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities.
Fair Value Measurements Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities.
Debt The Credit Agreement provides for a five-year total commitment of $2.5 billion, consisting of standby letters of credit and/or revolving credit borrowings without any limits on the type of borrowings. Under circumstances described in the Credit Agreement, the aggregate commitments may be increased by up to $500 million, for a total commitment under the Credit Agreement of $3.0 billion.
The Credit Agreement provides for a five-year total commitment of $2.5 billion, consisting of standby letters of credit and/or revolving credit borrowings without any limits on the type of borrowings. Under circumstances described in the Credit Agreement, the aggregate commitments may be increased by up to $500 million, for a total commitment under the Credit Agreement of $3.0 billion.
No consideration is given to credit risk because policy loans are effectively collateralized by the cash surrender value of the policies. • Other invested assets: Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs.
No consideration is given to credit risk because policy loans are effectively collateralized by the cash surrender value of the policies. • Other invested assets: Certain of our subsidiaries are members of Federal Home Loan Banks (“FHLBs”) and such membership requires the members to own stock in these FHLBs.
In addition, under the tax law, AGC and its directly owned life insurance subsidiaries (the “AGC Group”) will not be permitted to join in the filing of a U.S. consolidated federal income tax return with our other subsidiaries (collectively, the “Non-Life Group”) for the five-year waiting period.
Under the tax law, AGC and its directly owned life insurance subsidiaries (the “AGC Group”) will not be permitted to join in the filing of a U.S. consolidated federal income tax return with our other subsidiaries (collectively, the “Non-Life Group”) for the five-year waiting period.
Recent events, including the IPO, multiple changes in target interest rates by the Board of Governors of the Federal Reserve System and significant market volatility, impacted actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies.
Recent events, including multiple changes in target interest rates by the Board of Governors of the Federal Reserve System and significant market volatility, impacted actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies.
We maintain a diversified, high to medium quality portfolio of fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans that, to the extent practicable, match the duration characteristics of the liabilities.
We maintain a diversified, high quality portfolio of fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans that, to the extent practicable, match the duration characteristics of the liabilities.
These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. 2.
These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.
Deferred Policy Acquisition Costs We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling.
We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling.
On April 6, 2022, in connection with the issuance of the senior unsecured notes of Corebridge Parent, (i) the commitments under the 18-Month DDTL Facility were terminated in full and (ii) the commitments under the Three-Year DDTL Facility were reduced from $3.0 billion to $2.5 billion.
Debt On April 6, 2022, in connection with the issuance of the senior unsecured notes of Corebridge Parent, (i) the commitments under the 18-Month DDTL Facility were terminated in full and (ii) the commitments under the Three-Year DDTL Facility were reduced from $3.0 billion to $2.5 billion.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent).
Fair Value Measurements INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent).
Corebridge’s 2023 LTIP provides for an annual award to certain employees, including our senior executive officers and other highly compensated employees, that may comprise a combination of one or more of the following units: RSUs or stock options.
Corebridge’s LTIP provides for an annual award to certain employees, including our senior executive officers and other highly compensated employees, that may comprise a combination of one or more of the following units: RSUs or stock options.
The Moriarty plaintiff contends AGL did not comply with these requirements for a policy issued before these statutes went into effect. The plaintiff seeks damages and other relief. AGL asserts various defenses to the plaintiff’s claims and to class certification.
The plaintiff contends AGL did not comply with these requirements for a policy issued before these statutes went into effect. The plaintiff seeks damages and other relief. AGL asserts various defenses to the plaintiff’s claims and to class certification.
Fair Value Measurements Embedded Derivatives within Reinsurance Contracts The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by Corebridge related to Corebridge’s funds withheld payable.
Embedded Derivatives within Reinsurance Contracts The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by Corebridge related to Corebridge’s funds withheld payable.
Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Corebridge Financial, Inc. and its subsidiaries (the “Company”) as of December 31, 2023 and 2022, and the related consolidated statements of income (loss), comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the “consolidated financial statements”).
Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Corebridge Financial, Inc. and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of income (loss), comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the “consolidated financial statements”).
Other invested assets We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price.
Fair Value Measurements Other invested assets We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price.
Income Taxes For the year ended December 31, 2023, there was a tax benefit on income from operations, resulting in an effective tax rate on income from operations of (10.2)%.
For the year ended December 31, 2023, there was a tax benefit on income from operations, resulting in an effective tax rate on income from operations of (10.2)%.
For the year ended December 31, 2022, there was a tax expense on income from operations, resulting in an effective tax rate on income from operations of 19.2%.
Income Taxes For the year ended December 31, 2022, there was a tax expense on income from operations, resulting in an effective tax rate on income from operations of 19.2%.
VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE Incorporation of credit risk in fair value measurements • Our own credit risk: Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG credit default swaps (“CDS”) or cash bond spreads.
VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE Incorporation of credit risk in fair value measurements • Our own credit risk: Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable Corebridge credit default swaps (“CDS”) or cash bond spreads.
None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2023 or 2022. Unrealized gains and losses from available-for-sale investments in fixed maturity securities carried at fair value are reported as a separate component of AOCI, net of policy related amounts and deferred income taxes, in Shareholders’ equity.
None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2024 or 2023. Unrealized gains and losses from available-for-sale investments in fixed maturity securities carried at fair value are reported as a separate component of AOCI, net of policy related amounts and deferred income taxes, in Shareholders’ equity.
Variable investment income includes call and tender income, commercial mortgage loan prepayments, changes in market value of investments accounted for under the fair value option, interest received on defaulted investments (other than foreclosed real estate), income from alternative investments, affordable housing investments and other miscellaneous investment income, including income of certain partnership entities that are required to be consolidated.
Variable investment income includes call and tender income, commercial mortgage loan prepayments, changes in market value of investments accounted for under the fair value option, interest received on defaulted investments (other than foreclosed real estate), income from alternative investments and other miscellaneous investment income, including income of certain partnership entities that are required to be consolidated.
In connection with the preparation of this Annual Report on Form 10-K, an evaluation was carried out by Corebridge management, with the participation of Corebridge’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of December 31, 2023.
In connection with the preparation of this Annual Report on Form 10-K, an evaluation was carried out by Corebridge management, with the participation of Corebridge’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of December 31, 2024.
See “Risk Factors—Risks Relating to Market Conditions—We are exposed to risk from equity market declines or volatility.” Market and other economic factors may result in increased credit impairments, downgrades and losses across single or numerous asset classes due to lower collateral values or deteriorating cash flow and profitability by borrowers could lead to higher defaults on our investment portfolio, especially in geographic, industry or investment sectors where we have higher concentrations of exposure, such as real estate related borrowings.
For additional information see “Risk Factors—Risks Relating to Market Conditions—We are exposed to risk from equity market declines or volatility.” Market and other economic factors may result in increased credit impairments, downgrades and losses across single or numerous asset classes due to lower collateral values or deteriorating cash flow and profitability by borrowers could lead to higher defaults on our investment portfolio, especially in geographic, industry or investment sectors where we have higher concentrations of exposure, such as real estate related borrowings.
Option pricing models are used to estimate the fair value of embedded derivatives in our fixed index annuity and life contracts, taking into account the capital market assumptions for future index growth rates, volatility of the index, future interest rates, and our ability to adjust the participation rate and the cap on fixed index credited rates in light of market conditions and policyholder behavior assumptions.
Option pricing models are used to estimate the fair value of embedded derivatives in our fixed index annuity, registered index linked annuity contracts and life contracts, taking into account the capital market assumptions for future index growth rates, volatility of the index, future interest rates, and our ability to adjust the participation rate and the cap on fixed index credited rates in light of market conditions and policyholder behavior assumptions.
Related Parties Tax Sharing Agreements On September 14, 2022, we entered into a tax matters agreement with AIG that governs the parties’ respective rights, responsibilities, and obligations with respect to taxes, including the allocation of current and historic tax liabilities (whether income or non-income consolidated or stand-alone) between us and AIG (the “Tax Matters Agreement”).
Tax Sharing Agreements On September 14, 2022, we entered into a tax matters agreement with AIG that governs the parties’ respective rights, responsibilities, and obligations with respect to taxes, including the allocation of current and historic tax liabilities (whether income or non-income consolidated or stand-alone) between us and AIG (the “Tax Matters Agreement”).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
A tax position is measured at the largest amount of benefit that is greater than 50% likely to be realized upon settlement. We classify interest expense and penalties recognized on income taxes as a component of income taxes. For an additional discussion, see Note 24 to the Consolidated Financial Statements .
A tax position is measured at the largest amount of benefit that is greater than 50% likely to be realized upon settlement. We classify interest expense and penalties recognized on income taxes as a component of income taxes. For an additional discussion, see Note 22 to the Consolidated Financial Statements .
Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such separate accounts are offset within the same line in the Consolidated Statements of Income (Loss). For discussion of the fair value measurement of guaranteed benefits that are accounted for as MRBs, see Note 5.
Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such separate accounts are offset within the same line in the Consolidated Statements of Income (Loss). For discussion of the fair value measurement of guaranteed benefits that are accounted for as MRBs, see Note 4.
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.
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, $2.7 billion of loans and $1.6 billion of assets across various asset categories were excluded due to modeling limitations. (b) The economic effect is the difference between the estimated fair value and the effect of a 100 bps parallel increase or decrease in all yield curves on the estimated fair value.
In addition, $2.6 billion of loans and $1.0 billion of assets across various asset categories were excluded due to modeling limitations. (b) The economic effect is the difference between the estimated fair value and the effect of a 100 bps parallel increase or decrease in all yield curves on the estimated fair value.
Subsequent to the acquisition date, the purchased credit deteriorated assets follow the same accounting as other structured securities that are not of high credit quality. We did not purchase securities with more-than-insignificant credit deterioration since their origination during the years ended December 31, 2023, 2022 and 2021.
Subsequent to the acquisition date, the purchased credit deteriorated assets follow the same accounting as other structured securities that are not of high credit quality. We did not purchase securities with more-than-insignificant credit deterioration since their origination during the years ended December 31, 2024, 2023 and 2022.
Deferred Profit Liability: Corebridge issues certain annuity and life insurance contracts where premiums are paid up-front or for a shorter period than benefits will be paid (i.e., limited pay contracts). A DPL is required to be established to avoid recognition of gains when these contracts are issued.
Deferred Profit Liability: Corebridge issues certain annuity and life insurance contracts where premiums are paid up-front or for a shorter period than benefits will be paid (i.e., limited pay contracts). A Deferred Profit Liability (“DPL”) is required to be established to avoid recognition of gains when these contracts are issued.
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)) that have occurred during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B | Other Information None.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)) that have occurred during the quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B | Other Information None.
The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Consolidated Balance Sheets: Year Ended December 31, 2023 Individual Retirement Group Retirement Life Insurance Institutional Markets Corporate and Other Total (in millions, except for liability durations) Present value of expected net premiums Balance, beginning of year $ — $ — $ 11,654 $ — $ 991 $ 12,645 Effect of changes in discount rate assumptions (AOCI) — — 1,872 — 66 1,938 Beginning balance at original discount rate — — 13,526 — 1,057 14,583 Effect of changes in cash flow assumptions — — 34 — 21 55 Effect of actual variances from expected experience — — 62 — 20 82 Adjusted beginning of year balance — — 13,622 — 1,098 14,720 Issuances — — 1,277 — — 1,277 Interest accrual — — 437 — 46 483 Net premium collected — — (1,464) — (118) (1,582) Foreign exchange impact — — 265 — — 265 Other — — 11 — (9) 2 Ending balance at original discount rate — — 14,148 — 1,017 15,165 Effect of changes in discount rate assumptions (AOCI) — — (1,482) — (44) (1,526) Reclassified to Liabilities held-for-sale — — (4,287) — — (4,287) Balance, end of year $ — $ — $ 8,379 $ — $ 973 $ 9,352 Present value of expected future policy benefits Balance, beginning of year $ 1,223 $ 211 $ 21,179 $ 12,464 $ 20,429 $ 55,506 Effect of changes in discount rate assumptions (AOCI) 167 2 3,424 2,634 1,083 7,310 Beginning balance at original discount rate 1,390 213 24,603 15,098 21,512 62,816 Effect of changes in cash flow assumptions (a) — — 62 — 76 138 Effect of actual variances from expected experience (a) (5) (2) 122 15 — 130 Adjusted beginning of year balance 1,385 211 24,787 15,113 21,588 63,084 Issuances 173 18 1,266 5,339 4 6,800 Interest accrual 55 11 908 664 1,026 2,664 Benefit payments (128) (26) (1,921) (1,087) (1,503) (4,665) Foreign exchange impact — — 345 359 — 704 Other — — 10 — (24) (14) Ending balance at original discount rate 1,485 214 25,395 20,388 21,091 68,573 Effect of changes in discount rate assumptions (AOCI) (132) 3 (2,745) (1,906) (437) (5,217) Reclassified to Liabilities held-for-sale — — (5,119) — — (5,119) Balance, end of year $ 1,353 $ 217 $ 17,531 $ 18,482 $ 20,654 $ 58,237 Net liability for future policy benefits, end of year 1,353 217 9,152 18,482 19,681 48,885 Liability for future policy benefits for certain participating contracts — — 13 — 1,300 1,313 Liability for universal life policies with secondary guarantees and similar features (b) — — 3,731 — 55 3,786 Deferred profit liability 84 10 19 1,543 855 2,511 Other reconciling items (c) 33 — 485 — 95 613 Future policy benefits for life and accident and health insurance contracts 1,470 227 13,400 20,025 21,986 57,108 Less: Reinsurance recoverable: (4) — (719) (39) (21,986) (22,748) Net liability for future policy benefits after reinsurance recoverable $ 1,466 $ 227 $ 12,681 $ 19,986 $ — $ 34,360 Weighted average liability duration of the liability for future policy benefits (d)(e) 7.8 6.8 12.8 12.1 11.5 Corebridge | 2023 Form 10-K 234 TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 14.
Future Policy Benefits Individual Retirement Group Retirement Life Insurance Institutional Markets Corporate and Other Total (in millions, except for liability durations) Year Ended December 31, 2023 Present value of expected net premiums Balance, beginning of year $ — $ — $ 11,654 $ — $ 991 $ 12,645 Effect of changes in discount rate assumptions (AOCI) — — 1,872 — 66 1,938 Beginning balance at original discount rate — — 13,526 — 1,057 14,583 Effect of changes in cash flow assumptions — — 34 — 21 55 Effect of actual variances from expected experience — — 62 — 20 82 Adjusted beginning of year balance — — 13,622 — 1,098 14,720 Issuances — — 1,277 — — 1,277 Interest accrual — — 437 — 46 483 Net premium collected — — (1,464) — (118) (1,582) Foreign exchange impact — — 265 — — 265 Other — — 11 — (9) 2 Ending balance at original discount rate — — 14,148 — 1,017 15,165 Effect of changes in discount rate assumptions (AOCI) — — (1,482) — (44) (1,526) Reclassified to Liabilities held-for-sale — — (4,287) — — (4,287) Balance, end of year $ — $ — $ 8,379 $ — $ 973 $ 9,352 Present value of expected future policy benefits Balance, beginning of year $ 1,223 $ 211 $ 21,179 $ 12,464 $ 20,429 $ 55,506 Effect of changes in discount rate assumptions (AOCI) 167 2 3,424 2,634 1,083 7,310 Beginning balance at original discount rate 1,390 213 24,603 15,098 21,512 62,816 Effect of changes in cash flow assumptions (a) — — 62 — 76 138 Effect of actual variances from expected experience (a) (5) (2) 122 15 — 130 Adjusted beginning of year balance 1,385 211 24,787 15,113 21,588 63,084 Issuances 173 18 1,266 5,339 4 6,800 Interest accrual 55 11 908 664 1,026 2,664 Benefit payments (128) (26) (1,921) (1,087) (1,503) (4,665) Foreign exchange impact — — 345 359 — 704 Other — — 10 — (24) (14) Ending balance at original discount rate 1,485 214 25,395 20,388 21,091 68,573 Effect of changes in discount rate assumptions (AOCI) (132) 3 (2,745) (1,906) (437) (5,217) Reclassified to Liabilities held-for-sale — — (5,119) — — (5,119) Balance, end of year $ 1,353 $ 217 $ 17,531 $ 18,482 $ 20,654 $ 58,237 Net liability for future policy benefits, end of year 1,353 217 9,152 18,482 19,681 48,885 Liability for future policy benefits for certain participating contracts — — 13 — 1,300 1,313 Liability for universal life policies (b) — — 3,731 — 55 3,786 Deferred profit liability 84 10 19 1,543 855 2,511 Other reconciling items (c) 33 — 485 — 95 613 Future policy benefits for life and accident and health insurance contracts 1,470 227 13,400 20,025 21,986 57,108 Less: Reinsurance recoverable: (4) — (719) (39) (21,986) (22,748) Net liability for future policy benefits after reinsurance recoverable $ 1,466 $ 227 $ 12,681 $ 19,986 $ — $ 34,360 Weighted average liability duration of the liability for future policy benefits (d)(e) 7.8 6.8 12.8 12.1 11.5 Corebridge | 2024 Form 10-K 217 TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 12.
DAC and related items (which may include VOBA) are amortized on a constant level basis. The net impacts to pre-tax income and APTOI because of the update of actuarial assumptions for the years ended December 31, 2023, 2022 and 2021 are shown in the following tables.
DAC and related items (which may include VOBA) are amortized on a constant level basis. The net impacts to pre-tax income and APTOI because of the update of actuarial assumptions for the years ended December 31, 2024, 2023 and 2022 are shown in the following tables.
The magnitude and direction of the change in reserves may vary over time based on the emergence of the benefit ratio and the level of assessments. For additional information on how we reserve for variable and fixed index annuity products with guaranteed benefit features, see Note 16 to the Consolidated Financial Statements.
The magnitude and direction of the change in reserves may vary over time based on the emergence of the benefit ratio and the level of assessments. For additional information on how we reserve for variable and fixed index annuity products with guaranteed benefit features, see Note 14 to the Consolidated Financial Statements.
Market risk benefits and Embedded derivatives within Policyholder contract deposits Certain variable annuity, fixed annuity and fixed index annuity contracts contain MRBs related to guaranteed benefit features that we separate from the host contracts and account for at fair value, with certain changes recognized in earnings.
Market risk benefits and Embedded derivatives within Policyholder contract deposits Certain variable annuity, fixed annuity, fixed index annuity and registered index linked annuity contracts contain MRBs related to guaranteed benefit features that we separate from the host contracts and account for at fair value, with certain changes recognized in earnings.
The AIG U.S. consolidated tax group is currently under IRS examination for the tax years 2011 through 2019 and is continuing to engage in the appeals process for years 2007 through 2010. We are periodically advised of certain IRS and other adjustments identified in AIG’s consolidated tax return which are attributable to our operations.
The AIG Consolidated Tax Group is currently under IRS examination for the tax years 2011 through 2019 and is continuing to engage in the appeals process for years 2007 through 2010. We are periodically advised of certain IRS and other adjustments identified in AIG's consolidated tax return which are attributable to our operations.
These guaranteed features include GMDB that are payable in the event of death and living benefits that guarantee lifetime withdrawals regardless of fixed account and separate account value performance. Living benefit features primarily include GMWB. For additional information on these features, see Note 14 to the Consolidated Financial Statements .
These guaranteed features include GMDB that are payable in the event of death and living benefits that guarantee lifetime withdrawals regardless of fixed account and separate account value performance. Living benefit features primarily include GMWB. For additional information on these features, see Note 12 to the Consolidated Financial Statements .
Income Taxes ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCE The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized.
ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCE The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized.
Reinsurance Transactions From time to time, AIG Life has entered into various coinsurance agreements with American International Reinsurance Company, Ltd., a consolidated subsidiary of AIG (“AIRCO”) as follows: • In 2018, AIG Life ceded risks to AIRCO relating to the payment of obligations of life-contingent annuity claims in the annuitization phase of the contracts on or after June 30, 2018. • In 2019 and 2020, AIG Life ceded risks to AIRCO relating to certain whole life policies issued prior to and subsequent to July 1, 2019, respectively.
Reinsurance Transactions From time to time, AIG Life U.K. entered into various coinsurance agreements with American International Reinsurance Company, Ltd., a consolidated subsidiary of AIG (“AIRCO”) as follows: • In 2018, AIG Life U.K. ceded risks to AIRCO relating to the payment of obligations of life-contingent annuity claims in the annuitization phase of the contracts on or after June 30, 2018. • In 2019 and 2020, AIG Life U.K. ceded risks to AIRCO relating to certain whole life policies issued prior to and subsequent to July 1, 2019, respectively.
For a discussion of the valuation methodologies for assets and liabilities measured at fair value, and a discussion of transfers of Level 3 assets and liabilities, see Note 5 to the Consolidated Financial Statements . MARKET RISK BENEFITS Annuity products offered by our Individual Retirement and Group Retirement segments offer GMxBs.
For a discussion of the valuation methodologies for assets and liabilities measured at fair value, and a discussion of transfers of Level 3 assets and liabilities, see Note 4 to the Consolidated Financial Statements . MARKET RISK BENEFITS Annuity products offered by our Individual Retirement and Group Retirement segments offer GMxBs.

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