Corebridge Stock Down Despite Q4 Earnings Beat, Revenues Down Y/Y

Shares of Corebridge Financial, Inc. CRBG lost 5.9% since it reported fourth-quarter 2024 results on Feb. 12, 2025, despite an earnings beat. The quarterly earnings benefited from higher investment income and improved Life Insurance performance. However, the results were hurt by a decline in Life Insurance premiums and deposits and lower guaranteed investment contract deposits.See the Zacks Earnings Calendar to stay ahead of market-making news.CRBG reported fourth-quarter 2024 operating earnings per share of $1.23, which beat the Zacks Consensus Estimate by 3.4%. The bottom line climbed 18.3% year over year.Adjusted revenues declined 15.2% year over year to $5 billion. The top line fell short of the consensus mark by 16.7%. Corebridge Financial, Inc. Price, Consensus and EPS Surprise Corebridge Financial, Inc. price-consensus-eps-surprise-chart | Corebridge Financial, Inc. QuoteQuarterly Operational Update of CRBGPremiums and deposits were $9.9 billion, which declined 6% year over year. Premiums and deposits, excluding transactional activity and the sale of international businesses, declined 8% year over year due to lower fixed annuity deposits.Net investment income improved 12.1% year over year to $2.9 billion, attributable to increased base portfolio income.Total benefits and expenses of $4.1 billion decreased 20.1% year over year due to lower policyholder benefits and general operating expenses.Corebridge’s adjusted pre-tax operating income rose 7.1% year over year to $878 million in the fourth quarter.Adjusted return on average equity of 12.8% improved 160 basis points (bps) year over year.Segmental Performance of CRBGIndividual RetirementThe segment recorded premiums and deposits of $5 billion in the fourth quarter, which declined 5% year over year due to lower fixed annuity deposits. Fee income increased 9.4% year over year to $315 million.Spread income of $703 million declined 1.7% year over year. The unit’s adjusted pre-tax operating income declined 8% year over year to $578 million, lower than the Zacks Consensus Estimate of $634.7 million. The metric suffered due to the impact of changes in short-term interest rates.Group RetirementPremiums and deposits declined 22% year over year to $1.6 billion in the segment, attributable to lower out-of-plan deposits. Fee income of $203 million improved 12.2% year over year.Spread income fell 17.1% year over year to $160 million. Adjusted pre-tax operating income was $161 million, which declined 10% year over year due to a decline in base spread income. The metric also missed the consensus mark of $172.7 million.Life InsuranceThe unit’s premiums and deposits of $879 million fell 20% year over year. Adjusted pre-tax operating income climbed 97% year over year to $156 million on the back of improved underwriting margin. The metric came higher than the Zacks Consensus Estimate of $93.1 million.Institutional MarketsPremiums and deposits increased 18% year over year to $2.4 billion on the back of deposits from guaranteed investment contracts. Fee income remained flat year over year to $16 million.Spread income of $127 million surged 47.7% year over year. The segment recorded an adjusted pre-tax operating income of $133 million, which increased 43% year over year on the back of improved variable investment income. The metric beat the consensus mark of $127 million.Corporate and OtherThe unit incurred an adjusted pre-tax operating loss of $150 million, narrower than the year-ago quarter’s loss of $159 million on the back of reduced corporate expenses.Corebridge’s Financial Position (as of Dec. 31, 2024)Corebridge exited the fourth quarter with a cash balance of $806 million, which rose 31.7% from the 2023-end level. Total investments of $243.8 billion increased 4.8% from the figure at 2023-end.Total assets of $389.4 billion increased 2.7% from the 2023-end figure.Short-term and long-term debt amounted to $10.5 billion, up 11.6% from the figure as of Dec. 31, 2023.Total equity declined 2.4% from the 2023-end level to $12.3 billion.Adjusted book value per share was $39.80, which increased 8.1% year over year.Full Year UpdateTotal revenues declined 0.5% year over year to $18.8 million in 2025.Adjusted EPS increased 17.8% year over year to $4.83 per share.CRBG’s Share Repurchase & Dividend UpdateCorebridge bought back common shares worth $398 million in the fourth quarter. It also paid quarterly dividends of $129 million. The company also increased share repurchase authorization by $2 billion and dividend to 24 cents per share.CRBG’s Zacks RankCorebridge currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.How Did Other Finance Stocks Perform?Here are some other stocks in the broader Finance space that have already reported earnings for this quarter: Capital One COF, Golub Capital BDC, Inc. GBDC and Ares Capital Corporation ARCC.Capital One’s fourth-quarter 2024 adjusted earnings of $3.09 per share surpassed the Zacks Consensus Estimate of $2.66 thanks to higher net interest income and non-interest income and a rise in loans and deposits. Also, provisions declined during the quarter. However, the positives were partially offset by increased expenses.Golub Capital reported first-quarter fiscal 2025 adjusted earnings per share of 39 cents, which missed the Zacks Consensus Estimate by 9.3% and declined sequentially from 47 cents. Over the past four quarters, the company beat the consensus estimate for earnings just once. Total investment income of $220.7 million missed the consensus mark by 2.5%. The figure also fell sequentially from $224.4 million.Ares Capital’s fourth-quarter 2024 core earnings of 55 cents per share missed the Zacks Consensus Estimate of 58 cents due to an increase in expenses. However, an improvement in the total investment income and the company’s robust portfolio activities supported the results to some extent.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capital One Financial Corporation (COF): Free Stock Analysis Report Ares Capital Corporation (ARCC): Free Stock Analysis Report Golub Capital BDC, Inc. (GBDC): Free Stock Analysis Report Corebridge Financial, Inc. (CRBG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks