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Corebridge (CRBG) Q2 Earnings Top on Premium Growth, Rise Y/Y
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Corebridge Financial, Inc. (CRBG - Free Report) reported second-quarter 2023 adjusted operating earnings per share (EPS) of $1.04, which comfortably beat the Zacks Consensus Estimate by 8.3%. Also, the bottom line jumped 36.8% year over year in the second quarter.
Operating revenues of $5,845 million increased 42.3% from a year ago. The top line beat the consensus estimate by 30.8%.
The strong second-quarter results were supported by improving premiums and deposits and growing net investment income, partially offset by higher expenses. Robust organic growth of spread-based products and a high-quality investment portfolio aided the results.
Corebridge Financial, Inc. Price, Consensus and EPS Surprise
Premiums and deposits, excluding transactional activity, increased 10% year over year due to higher fixed index annuity and deposits.
Total net investment income increased 19% year over year to $2,714 million due to improving base portfolio income, partially offset by declining variable investment income.
Corebridge Financial’s total benefits, losses and expenses of $5,029 million increased 47.3% year over year, primarily due to higher policyholder benefits and interest expenses.
Adjusted return on average equity increased 300 basis points (bps) year over year to 11.7% in the second quarter.
Segmental Performances
Individual Retirement
The segment reported premiums and deposits of $4,045 million, which increased 11.7% year over year, mainly due to growth in fixed index annuity deposits. Declining fixed annuity and variable annuity deposits partially offset the positives.
Spread income increased 52.6%, while fee income declined 7% in the second quarter. Adjusted pre-tax operating income of $574 million increased 57.3% year over year in the second quarter.
Group Retirement
The segment reported premiums and deposits of $1,923 million, which increased 8.5% year over year, mainly due to higher out-of-plan fixed annuity deposits. The positives were partially offset by lower plan acquisitions and declining out-of-plan variable annuity deposits.
Spread income and fee income increased 3.9% and 0.6%, respectively, in the second quarter. Adjusted pre-tax operating income of $197 million increased 10.1% year over year in the second quarter.
Life Insurance
The segment reported premiums and deposits of $1,063 million, which increased 1.3% year over year, mainly due to improving business mix and continued growth trend in the U.K.
Adjusted pre-tax operating income of $76 million decreased 21.6% year over year in the second quarter due to lower variable investment income. This decrease was partially offset by improved base portfolio income.
Institutional Markets
The segment reported premiums and deposits of $2,910 million, which increased more than four times year over year mainly due to the increasing volume of pension risk transfers and guaranteed investment contracts.
Spread income increased 74.6%, while fee income remained constant in the second quarter. Adjusted pre-tax operating income of $126 million increased 65.8% year over year in the second quarter.
Financial Position (as of Jun 30, 2023)
Corebridge Financial exited the second quarter with a cash balance of $751 million, which increased from $552 million at 2022-end. Total assets of $367.5 billion increased from $360.3 billion at 2022-end.
Long-term debt increased from $7,868 million to $7,873 million at the second-quarter end. The short-term debt remained stable.
Total equity rose to $11,468 million from $10,319 million at the prior-year end. Adjusted book value per share was $36.44, up from $35.09 a year ago.
Share Repurchase & Dividend Update
Corebridge Financial rewarded its shareholders with $200 million of share repurchases in the second quarter. It had a remaining capacity of $800 million in its share repurchase program as of Jun 30, 2023.
The company paid dividends worth $550 million in the second quarter, of which $400 million were special dividends. On Aug 3, 2023, the company announced for third-quarter dividend payment, which will be paid on Sep 29.
The Travelers Companies (TRV - Free Report) reported second-quarter 2023 core income of 6 cents per share, which missed the Zacks Consensus Estimate of $2.27. The bottom line decreased 97.7% year over year, primarily attributable to higher-than-expected catastrophe loss.
Travelers’ total revenues increased 9.8% from the year-ago quarter to $10.1 billion, primarily driven by higher premiums. The top-line figure was almost in line with the Zacks Consensus Estimate. Net written premiums increased 14% year over year to a record $10.3 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.1 billion.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2023 EPS of 50 cents missed the Zacks Consensus Estimate of 88 cents. The bottom line declined 47.4% year over year.
Net premiums earned grew 19% to $14.5 billion and beat our estimate of $12.9 billion as well as the Zacks Consensus Estimate of $14.3 billion. The combined ratio deteriorated 480 bps from the prior-year quarter’s level to 104.
W.R. Berkley Corporation’s (WRB - Free Report) second-quarter 2023 operating income of $1.14 per share beat the Zacks Consensus Estimate by 6.5%. The bottom line increased 1.8% year over year.
Operating revenues came in at $2.9 billion, down 57.4% year over year, on the back of higher net premiums earned as well as higher net investment income. The top line missed the consensus estimate by 1.2%.
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Corebridge (CRBG) Q2 Earnings Top on Premium Growth, Rise Y/Y
Corebridge Financial, Inc. (CRBG - Free Report) reported second-quarter 2023 adjusted operating earnings per share (EPS) of $1.04, which comfortably beat the Zacks Consensus Estimate by 8.3%. Also, the bottom line jumped 36.8% year over year in the second quarter.
Operating revenues of $5,845 million increased 42.3% from a year ago. The top line beat the consensus estimate by 30.8%.
The strong second-quarter results were supported by improving premiums and deposits and growing net investment income, partially offset by higher expenses. Robust organic growth of spread-based products and a high-quality investment portfolio aided the results.
Corebridge Financial, Inc. Price, Consensus and EPS Surprise
Corebridge Financial, Inc. price-consensus-eps-surprise-chart | Corebridge Financial, Inc. Quote
Quarterly Operational Update
Premiums and deposits, excluding transactional activity, increased 10% year over year due to higher fixed index annuity and deposits.
Total net investment income increased 19% year over year to $2,714 million due to improving base portfolio income, partially offset by declining variable investment income.
Corebridge Financial’s total benefits, losses and expenses of $5,029 million increased 47.3% year over year, primarily due to higher policyholder benefits and interest expenses.
Adjusted return on average equity increased 300 basis points (bps) year over year to 11.7% in the second quarter.
Segmental Performances
Individual Retirement
The segment reported premiums and deposits of $4,045 million, which increased 11.7% year over year, mainly due to growth in fixed index annuity deposits. Declining fixed annuity and variable annuity deposits partially offset the positives.
Spread income increased 52.6%, while fee income declined 7% in the second quarter. Adjusted pre-tax operating income of $574 million increased 57.3% year over year in the second quarter.
Group Retirement
The segment reported premiums and deposits of $1,923 million, which increased 8.5% year over year, mainly due to higher out-of-plan fixed annuity deposits. The positives were partially offset by lower plan acquisitions and declining out-of-plan variable annuity deposits.
Spread income and fee income increased 3.9% and 0.6%, respectively, in the second quarter. Adjusted pre-tax operating income of $197 million increased 10.1% year over year in the second quarter.
Life Insurance
The segment reported premiums and deposits of $1,063 million, which increased 1.3% year over year, mainly due to improving business mix and continued growth trend in the U.K.
Adjusted pre-tax operating income of $76 million decreased 21.6% year over year in the second quarter due to lower variable investment income. This decrease was partially offset by improved base portfolio income.
Institutional Markets
The segment reported premiums and deposits of $2,910 million, which increased more than four times year over year mainly due to the increasing volume of pension risk transfers and guaranteed investment contracts.
Spread income increased 74.6%, while fee income remained constant in the second quarter. Adjusted pre-tax operating income of $126 million increased 65.8% year over year in the second quarter.
Financial Position (as of Jun 30, 2023)
Corebridge Financial exited the second quarter with a cash balance of $751 million, which increased from $552 million at 2022-end. Total assets of $367.5 billion increased from $360.3 billion at 2022-end.
Long-term debt increased from $7,868 million to $7,873 million at the second-quarter end. The short-term debt remained stable.
Total equity rose to $11,468 million from $10,319 million at the prior-year end. Adjusted book value per share was $36.44, up from $35.09 a year ago.
Share Repurchase & Dividend Update
Corebridge Financial rewarded its shareholders with $200 million of share repurchases in the second quarter. It had a remaining capacity of $800 million in its share repurchase program as of Jun 30, 2023.
The company paid dividends worth $550 million in the second quarter, of which $400 million were special dividends. On Aug 3, 2023, the company announced for third-quarter dividend payment, which will be paid on Sep 29.
Zacks Rank
CRBG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported second-quarter 2023 core income of 6 cents per share, which missed the Zacks Consensus Estimate of $2.27. The bottom line decreased 97.7% year over year, primarily attributable to higher-than-expected catastrophe loss.
Travelers’ total revenues increased 9.8% from the year-ago quarter to $10.1 billion, primarily driven by higher premiums. The top-line figure was almost in line with the Zacks Consensus Estimate. Net written premiums increased 14% year over year to a record $10.3 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.1 billion.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2023 EPS of 50 cents missed the Zacks Consensus Estimate of 88 cents. The bottom line declined 47.4% year over year.
Net premiums earned grew 19% to $14.5 billion and beat our estimate of $12.9 billion as well as the Zacks Consensus Estimate of $14.3 billion. The combined ratio deteriorated 480 bps from the prior-year quarter’s level to 104.
W.R. Berkley Corporation’s (WRB - Free Report) second-quarter 2023 operating income of $1.14 per share beat the Zacks Consensus Estimate by 6.5%. The bottom line increased 1.8% year over year.
Operating revenues came in at $2.9 billion, down 57.4% year over year, on the back of higher net premiums earned as well as higher net investment income. The top line missed the consensus estimate by 1.2%.