Executive Summary

Q2 2025 operating EPS was $1.36, a clear beat versus Wall Street consensus of $1.16; adjusted after-tax operating income (AATOI) was $750M, up year over year, while GAAP net loss was $(660)M driven by realized losses and MRB/funds-withheld derivative effects . EPS consensus (S&P Global) was $1.157, # of estimates: 14; revenue consensus was $4.881B vs S&P actual $3.156B, # of estimates: 5 (EPS beat; revenue miss)*.
Capital returns remained robust: $442M returned (64% H1 payout ratio), including $311M of buybacks and $131M in dividends; holding company liquidity stood at $1.3B and financial leverage was 30.8% .
Strategic catalyst: Corebridge closed ~90% of the Individual Retirement VA reinsurance transaction (AGL portion) and expects remaining portions to close in Q4 2025, reducing risk, improving earnings quality, and supporting higher distributions .
Segment highlights: Life Insurance APTOI +40% YoY on favorable mortality/pricing; Institutional Markets APTOI +80% YoY on higher variable investment income; Individual Retirement APTOI +$2M YoY with RILA sales passing $1B cumulatively in nine months .

What Went Well and What Went Wrong

What Went Well

Life Insurance delivered strong underwriting and APTOI growth: underwriting margin excluding VII +12% YoY; APTOI +44% YoY excluding VII, enabled by pricing discipline and automated underwriting, with favorable mortality and improved yields .
Institutional Markets APTOI +80% YoY on higher VII; total sources of income +64% YoY, underpinning diversified earnings streams despite lower GIC deposits .
CEO emphasized transformative VA reinsurance to “reduce risk, improve the quality of earnings, and drive higher distributions,” noting ~90% of the value closed (AGL portion) and remaining tranches targeted for Q4 2025: “the most important value-creation action… since the IPO” .

What Went Wrong

GAAP net loss of $(660)M (vs +$365M LY), mainly due to higher realized losses this quarter versus a UK divestiture gain last year; Return on equity (GAAP) fell to (21.7%) .
Core sources of income declined 2% YoY, and APTOI excluding VII fell 8% YoY due to cumulative short-term rate changes impacting base spread income .
Premiums and deposits fell 7% YoY to $10.8B, driven by lower GIC deposits; Group Retirement APTOI down 7% YoY (–14% ex-VII) with general account net outflows .

Financial Results

Consolidated GAAP and Operating Metrics vs Prior Periods

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Revenues ($USD Billions)	$3.50* (Values retrieved from S&P Global) ]	$4.16* (Values retrieved from S&P Global)	$4.08* (Values retrieved from S&P Global) ]	$3.77* (Values retrieved from S&P Global)
Net Income - (IS) ($USD Billions)	$0.365	$2.171	$(0.664)	$(0.660)
Diluted EPS - Continuing ($USD)	$0.60	$3.80	$(1.19)	$(1.20)* (Values retrieved from S&P Global)
EBIT ($USD Billions)	$0.324	$2.208	$(0.208)* (Values retrieved from S&P Global)	$(0.302)
EBIT Margin %	9.0%* (Values retrieved from S&P Global)	35.4%* (Values retrieved from S&P Global)	(5.6%)* (Values retrieved from S&P Global)	(9.6%)* (Values retrieved from S&P Global)
Net Income Margin %	10.1%* (Values retrieved from S&P Global)	34.8%* (Values retrieved from S&P Global)	(17.9%)* (Values retrieved from S&P Global)	(20.9%)* (Values retrieved from S&P Global)

Notes: Asterisks indicate S&P Global values.

Operating EPS and AATOI

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Operating EPS ($USD)	$1.13	$1.23	$1.16	$1.36
Adjusted After-tax Operating Income ($USD Millions)	$692	$701	$649	$750

Segment APTOI and Premiums & Deposits

Segment APTOI ($USD Millions)	Q2 2024	Q2 2025
Individual Retirement	$621	$623
Group Retirement	$195	$182
Life Insurance	$95	$133
Institutional Markets	$96	$173
Corporate & Other	$(148)	$(168)
Total	$859	$942

Premiums & Deposits ($USD Billions)	Q2 2024	Q2 2025
Individual Retirement	$6.79	$6.85
Group Retirement	$2.00	$1.98
Life Insurance	$0.85	$0.87
Institutional Markets	$2.05	$1.14
Total	$11.68	$10.83

KPIs and Capital

KPI	Q2 2024	Q1 2025	Q2 2025
Adjusted ROAE (%)	12.0	11.8	14.3
Adjusted BVPS ($)	$37.95	$38.83	$37.46
Holding Co. Liquidity ($USD Billions)	—	$2.4	$1.3
Financial Leverage Ratio (%)	—	31.9 (29.5% ex pre-funding)	30.8
Capital Returned ($USD Millions)	—	$454	$442
Dividend per Share ($)	—	$0.24 (declared 5/5/25)	$0.24 (declared 8/4/25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q2 2025	$0.24 (declared 5/5/25)	$0.24 (declared 8/4/25; payable 9/30/25)	Maintained
Payout ratio target	FY 2025	60–65% target reiterated	64% H1 payout ratio; target unchanged	Maintained
Long-term EPS growth	Multi-year	10–15% annual run-rate target	Reiterated; no change in Q2 release	Maintained
Adjusted ROAE target	FY/Long-term	12–14%	Reiterated; Q2 delivered 14.3%	Maintained
Alternatives returns outlook	Q2 2025	Q2 alternatives ~half of Q1 level (setup)	Actual VII higher in Institutional Markets; no formal update in Q2 release	Clarified prior setup vs realized mix

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Interest rates & base spread sensitivity	Reduced floating-rate exposure to ~5% by end of Mar; SOFR sensitivity down to ~2 bps per 25 bp move; base spread income expected to grow over time	APTOI ex-VII −8% YoY as cumulative short-term rate changes weighed on base spread; VII offset in certain segments	Sensitivity continues to weigh near term; structural mitigation ongoing
Capital return	Q4: $527M; Q1: $454M; reiterated 60–65% payout	Q2: $442M; H1 payout ratio 64%	Consistent execution within target
Product performance (RILA/FIA)	RILA launched Oct-2024; $260M Q1 sales; strong adviser traction	RILA cumulative sales >$1B in nine months; Individual Retirement P&D +1% YoY	Scaling well; supports growth mix
Institutional Markets (PRT/GIC)	Robust PRT pipeline; GIC reserves +48% YoY	P&D −45% YoY on lower GIC deposits; APTOI +80% YoY on higher VII	Near-term deposit variability; earnings buoyed by VII
Technology/digital/AI	Automated underwriting; adviser productivity; exploration of AI to improve scalability	Life underwriting margin improved on automated platform and pricing discipline	Execution benefits visible in Life
Regulatory/capital (RBC)	Life Fleet RBC > target; diversified/hedged balance sheet	Life Fleet RBC above target; holding liquidity $1.3B	Stable capital profile

Management Commentary

“Our transformative reinsurance transaction is the most important value-creation action we have taken since the IPO, reducing risk, improving the quality of earnings, and driving higher distributions… we have closed on the AGL portion… approximately 90% of the value” .
“Operating earnings per share were up 20%, and adjusted return on average equity was up 230 basis points” year over year .
“Individual Retirement sales exceeded last year's record second quarter and cumulative sales of our new RILA product passed $1 billion… nine months after initial launch” .

Q&A Highlights

Note: A Q2 2025 call transcript was not available. The following reflects Q1 2025 themes for continuity.

Base spread income guidance and sensitivity: reduced net floating-rate exposure (~5%), SOFR sensitivity lowered; base spread expected to grow over time with new money yields ~100 bps above roll-off .
Portfolio repositioning: opportunistic reallocation across public and private credit to boost yields within risk parameters; investment strategy is liability-driven and directed by Corebridge .
PRT pipeline and demand: continued robustness in U.S./U.K.; transaction timing inherently lumpy; strategic focus on full plan terminations .
Expense dynamics: seasonality (Rule of 65 equity grants, payroll taxes) and early retirement program; onetime cost ~$85M with expected run-rate benefits over time .
Technology and distribution: automated underwriting in Life; adviser productivity improvements; exploration of AI to enhance scalability and operating leverage .

Estimates Context

EPS: Operating/normalized EPS beat — $1.36 actual vs $1.16 consensus; 14 estimates (S&P Global). This supports upward bias to near-term EPS models if VII remains supportive and base spread headwinds moderate*.
Revenue: S&P Global shows $3.156B actual vs $4.881B consensus; insurers’ GAAP revenue is volatile and less indicative of operating performance, but Street models likely adjust to reported actuals*.
Implication: Expect estimate dispersion to narrow around operating EPS; segment mix (Life and Institutional Markets’ VII) may influence earnings quality/visibility*.

Notes: Asterisks indicate values retrieved from S&P Global.

Key Takeaways for Investors

EPS beat with Operating EPS $1.36 vs $1.16 consensus; Adjusted ROAE rose to 14.3% (from 12.0% LY), evidencing operating momentum despite rate headwinds .
Capital return remains a core pillar: $442M in Q2 (64% H1 payout ratio), $0.24 dividend maintained; holding liquidity $1.3B supports flexibility .
Life segment strength is structural: underwriting margin excluding VII +12% YoY and APTOI +44% YoY (ex-VII) on pricing discipline and automated underwriting .
Institutional Markets earnings leverage to VII: APTOI +80% YoY despite lower GIC deposits; monitor sustainability of VII and deposit flows .
Individual Retirement resilient: APTOI modestly higher and RILA scaling (> $1B cumulative sales), indicating product breadth and distribution efficacy .
Strategic de-risking underway: VA reinsurance ~90% closed; remaining portions targeted for Q4 2025 — key catalyst for earnings quality and distributions .
Near-term watch items: cumulative short-rate impact on base spread; Group Retirement net outflows; realized gains/losses/MRB volatility — all cited drivers of GAAP results .

Appendix: Additional Data Comparisons vs Estimates

Metric (Q2 2025)	Actual	Consensus	Surprise
EPS (Operating/Normalized) ($)	1.36	1.15708*	+0.20 (+17%) — bold beat
Revenue ($USD Billions)	3.156*	4.881*	−1.725 (−35%) — bold miss

Notes: Asterisks indicate values retrieved from S&P Global. Values retrieved from S&P Global.

Corebridge Financial, Inc. (CRBG)·Q2 2025 Earnings Summary