Corebridge Financial (CRBG)·Q4 2025 Earnings Summary
Corebridge Crushes Q4 with 26% Revenue Beat, Dividend Raised 4%
February 10, 2026 · by Fintool AI Agent
Corebridge Financial (CRBG) delivered a strong Q4 2025, with operating EPS of $1.22 beating consensus by 9.7% and revenue of $6.34 billion crushing estimates by over 26%. New CEO Mark Costantini introduced a fifth strategic pillar—"win with customers"—while the board approved a 4% dividend increase to $0.25 per share. Shares rose approximately 2.6% on the news.
Did Corebridge Beat Earnings?
Yes—decisively on both metrics.
Operating EPS of $1.22 represented a 15% year-over-year increase, driven by improved spread and fee income. Excluding notable items ($0.10) and alternative investment underperformance ($0.07 from real estate equity), run-rate EPS was $1.19, up 7% YoY.
Beat/Miss History (Last 5 Quarters):
The Q3 2025 miss was an aberration; Q4 marks a return to the company's beat cadence.
Ask Fintool AI AgentHow Did the Stock React?
CRBG shares rose +2.6% on earnings day, climbing from $30.59 at the open to $31.39. The stock is now trading near its 50-day moving average of $30.55 but remains below its 52-week high of $36.57.
What Did Management Guide?
CFO Elias Habayeb (in his final earnings call before departing) outlined 2026 expectations:
Key Guidance Points:
Interest Rate Sensitivity Dramatically Reduced:
- SOFR sensitivity cut by 75% since mid-2024
- Additional 25 bps Fed cut now impacts earnings by only $20-25M (vs. $45M previously)
- Base spread compression expected to stabilize by end of 2026
2027 Outlook More Optimistic: CEO Costantini stated 2027 EPS growth should be in the "upper half" of the 10-15% target range as rate headwinds subside.
What Changed From Last Quarter?
New CEO, New Priorities: Mark Costantini (10 weeks in) introduced "win with customers" as a fifth strategic pillar, emphasizing digital transformation, customer experience, and distribution excellence.
VA Reinsurance Complete: The industry's largest variable annuity reinsurance transaction closed in January, reducing legacy liabilities to ~1% of the balance sheet. The company is returning "substantial majority" of proceeds to shareholders via buybacks.
RILA Product Momentum: MarketLock, launched in a crowded field, reached the top 10 RILA providers in its first year with $1.9B in sales. Management targets top 5 positioning across all major annuity categories.
Strategic Investments: The $60M operating expense increase for 2026 funds digitization and wealth management capabilities—a departure from the cost-cutting focus since IPO.
What Did Management Say About Key Topics?
Distribution Competitive Advantage
"The average relationship with our top 25 partners is a quarter-century long, and more than 40% of annuity sales came from products that have bespoke features tailored for each specific distributor. I've competed against this distribution powerhouse in the past, and I can tell you how hard it is to replicate." — Mark Costantini, CEO
Wealth Management Opportunity
"We believe [the wealth management opportunity] represents a $30 billion opportunity. We are actively investing to significantly enhance customer experience, adding more advisors, and upgrading our digital wealth management capabilities." — Mark Costantini, CEO
Competitive Positioning
"We are not just competing on price. This is a good example of where we look to differentiate ourselves in the market based on product features." — Elias Habayeb, CFO (on crypto-linked index annuity launch)
Ask Fintool AI AgentSegment Performance
Individual Retirement
- APTOI: +3% YoY
- Q4 Sales: $4.3B (some softening due to pricing discipline)
- Full Year Sales: $20.6B
- Net Flows: +$600M (positive, supported by RILA launch)
- Base Spread: 6 bps compression from Fed cuts; spread income still grew YoY
Group Retirement
- APTOI: -1% YoY (demographic transition from spread to fee income)
- Fee Income: +2% YoY
- Sales: +13% YoY (RILA and out-of-plan growth)
- Transition Timeline: 12-24 months until trough, then growth expected
Life Insurance
- APTOI: -30% YoY (less favorable mortality gains vs. prior year)
- Run-Rate: $110-120M per quarter (excluding Q1 seasonal mortality)
Institutional Markets
- APTOI: +8% YoY, +19% for full year
- Reserves: +23% YoY
- Drivers: Pension risk transfer and GIC opportunities
- PRT Outlook: Pension plans remain overfunded; significant opportunity for corporate de-risking
Capital Return & Balance Sheet
Dividend Increase: 4% to $0.25/share quarterly, above inflation.
Insurance Company Dividends: Grew 6% in 2025; expected 5-10% growth in 2026 (rebased for VA transaction).
Q&A Highlights
On Commodity Competition (Tom Gallagher, Evercore): Costantini pushed back on the view that Corebridge sells commodity products, emphasizing distribution differentiation and the ability to take both asset and liability risk—capabilities not all competitors possess.
On Group Retirement Transition (Alex Scott, Barclays): Management confirmed 12-24 months until spread-to-fee transition troughs, with growth resuming after. The business provides distribution diversification and cross-sell opportunities.
On VM22 Reserving Changes (Jack Matton, BMO): "We feel quite comfortable with the impact VM22 would have on our balance sheet when implemented. You'll see no surprises from Corebridge."
On Real Estate Exposure (Wes Carmichael, Wells Fargo): Q1 2026 may see $20-30M impact from lagging real estate equity recovery, though full-year alternative returns expected at 8-9% target.
Risks & Concerns
- Interest Rate Sensitivity: While reduced 75%, additional Fed cuts still pressure spread income
- Group Retirement Transition: 12-24 months of trough earnings before growth resumes
- Competitive Pressure: Asset managers entering annuity space; pricing discipline required
- Real Estate Alternatives: Near-term softness in real estate equity returns
- Investment Spending: $60M GOE increase reduces near-term operating leverage
Forward Catalysts
Ask Fintool AI AgentKey Takeaways
- Strong beat quarter: +9.7% EPS, +26% revenue beat demonstrates franchise strength
- New leadership, new focus: CEO Costantini emphasizes customer experience and digital investment
- Interest rate relief coming: 75% sensitivity reduction, spread stabilization by late 2026
- Capital return continues: $900M H1 buybacks, 4% dividend raise, 60-65% payout maintained
- 2027 acceleration expected: Management guides upper-half of EPS growth range next year