Corebridge Financial Beats Q4 Estimates, Announces Dividend Hike
Retirement and insurance solutions provider COREBRIDGE FINANCIAL INC (NYSE:CRBG) reported financial results for the fourth quarter and full year 2025 that surpassed analyst expectations on the top and bottom lines. The company also announced a dividend increase, signaling confidence in its cash-generating capabilities.
Earnings and Revenue Performance
The company's fourth-quarter performance was notably strong against Wall Street's forecasts. Corebridge reported revenue of $6.34 billion, a significant 35.7% increase year-over-year. This figure comfortably exceeded the analyst consensus estimate of approximately $5.16 billion.
On the profitability front, Corebridge posted adjusted operating earnings per share (EPS) of $1.22. This result came in 9.7% above the estimated $1.13 per share. The company attributed its full-year strength to a record $42 billion in product sales and improvements in key metrics like operating EPS and return on equity.
Market Reaction and Capital Return
The market responded positively to the earnings beat and the company's capital management actions. Following the announcement, Corebridge's stock saw an after-market gain of approximately 2.6%. This initial reaction suggests investor approval of the quarterly results and the forward-looking capital plans.
Key shareholder return initiatives highlighted in the report include:
- A 4% increase in the quarterly common stock dividend to $0.25 per share.
- $1.2 billion returned to shareholders in Q4 through a combination of share repurchases ($1.1 billion) and dividends.
- For the full year 2025, total capital returned to shareholders reached $2.6 billion.
Business Segment Highlights
The earnings release detailed performance across Corebridge's four main business segments, revealing mixed results but overall growth in key income sources.
- Individual Retirement: Premiums and deposits declined 5% year-over-year to $4.3 billion, driven by lower fixed annuity sales. However, core sources of income rose 6%, aided by higher base spread and fee income.
- Group Retirement: This segment saw a 13% increase in premiums and deposits to $1.8 billion, fueled by growth in its out-of-plan retirement income products.
- Life Insurance: Results were relatively flat, with a slight dip in premiums and a 6% decrease in adjusted pre-tax operating income, primarily due to less favorable mortality experience.
- Institutional Markets: This was the standout segment for growth, with premiums and deposits surging 28% to $3.0 billion. The increase was driven by new pension risk transfer (PRT) and assumed reinsurance business.
Financial Strength and Outlook
Corebridge emphasized its robust financial position, ending the year with a Life Fleet RBC ratio of 430-440%, well above its target, and holding company liquidity of $2.3 billion.
While the press release did not provide specific quantitative financial guidance for the coming year, the commentary from President and CEO Marc Costantini was optimistic. He cited "market tailwinds" and "hard-to-replicate competitive advantages," expressing strong confidence in the company's future. Investors will be able to compare this qualitative outlook to the existing analyst estimates for future periods.
For a detailed look at Corebridge's historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investing involves risk, including the potential loss of principal. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
