v3.23.1
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources.
We report our results of operations as five reportable segments:
•Individual Retirement – consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds. On February 8, 2021, we announced the execution of a definitive agreement with Touchstone to sell certain assets of our retail mutual funds business. This Touchstone transaction closed on July 16, 2021. For further information on this sale, see Note 1 to our audited annual consolidated financial statements.
•Group Retirement – consists of record-keeping, plan administrative and compliance services, financial planning and advisory solutions offered in-plan, along with proprietary and limited non-proprietary annuities, advisory and brokerage products offered out-of-plan.
•Life Insurance – primary products in the United States include term life and universal life insurance. The International Life business issues individual and group life insurance in the United Kingdom, and distributes private medical insurance in Ireland.
•Institutional Markets – consists of stable value wrap (“SVW”) products, structured settlement and PRT annuities, guaranteed investment contracts (“GICs”) and Corporate Markets products that include corporate- and bank-owned life insurance (“COLI-BOLI”), private placement variable universal life and private placement variable annuity products.
•Corporate and Other – consists primarily of:
–corporate expenses not attributable to our other segments;
–interest expense on financial debt;
–results of our consolidated investment entities;
–institutional asset management business, which includes managing assets for non-consolidated affiliates; and
–results of our legacy insurance lines ceded to Fortitude Re.
We evaluate segment performance based on adjusted revenues and adjusted pre-tax operating income (loss) (“APTOI”). Adjusted revenues are derived by excluding certain items from total revenues. APTOI is derived by excluding certain items from income from operations before income tax. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and adjustments that we believe to be common to the industry. Legal entities are attributed to each segment based upon the predominance of activity in that legal entity.
APTOI excludes the impact of the following items:
Fortitude-related adjustments:
The modco reinsurance agreements with Fortitude Re transfer the economics of the invested assets supporting the reinsurance agreements to Fortitude Re. Accordingly, the net investment income on Fortitude Re funds withheld assets and the net realized gains (losses) on Fortitude Re funds withheld assets are excluded from APTOI. Similarly, changes in the Fortitude Re funds withheld embedded derivative are also excluded from APTOI.
As a result of entering into the reinsurance agreements with Fortitude Re we recorded a loss which was primarily attributed to the write-off of DAC, VOBA and deferred cost of reinsurance assets. The total loss and the ongoing results associated with the reinsurance agreement with Fortitude Re have been excluded from APTOI as these are not indicative of our ongoing business operations.
Investment-related adjustments:
APTOI excludes “Net realized gains (losses)”, including changes in the allowance for credit losses on available for sale securities and loans, as well as gains or losses from sales of securities, except for gains (losses) related to the disposition of real estate investments. Net realized gains (losses), except for gains (losses) related to the disposition of real estate investments, are excluded as the timing of sales on invested assets or changes in allowances depend largely on market credit cycles and can vary considerably across periods. In addition, changes in interest rates may create opportunistic scenarios to buy or sell invested assets. Our derivative results, including those used to economically hedge insurance liabilities or are recognized as embedded derivatives at fair value are also included in net realized gains (losses) and are similarly excluded from APTOI except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedges or for asset replication. Earned income on such economic hedges is reclassified from net realized gains and losses to specific APTOI line items based on the economic risk being hedged (e.g., net investment income and interest credited to policyholder account balances).
Prior to the adoption of LDTI effective January 1, 2021, our investment-oriented contracts, such as universal life insurance, and fixed, fixed index and variable annuities, were also impacted by net realized gains (losses), and these secondary impacts were also excluded from APTOI. Specifically, the changes in benefit reserves and DAC, VOBA and DSI assets related to net realized gains (losses) were excluded from APTOI.
Variable, Fixed Index Annuities and Index Universal Life Insurance Products Adjustments:
Prior to the adoption of LDTI effective January 1, 2021, certain of our variable annuity contracts and fixed index annuity contracts contained GMWBs and were accounted for as embedded derivatives. Fixed index annuity contracts contain indexed interest credits which are accounted for as embedded derivatives, and our index universal life products also contain embedded derivatives. Changes in the fair value of these embedded derivatives, including rider fees attributed to the embedded derivatives are recorded through "Net realized gains (losses)" and are excluded from APTOI.
Changes in the fair value of securities used to hedge these guaranteed living benefits are excluded from APTOI.
Market Risk Benefits adjustments:
Subsequent to the adoption of LDTI effective January 1, 2021, certain of our variable annuity, fixed annuity and fixed index annuity contracts contain guaranteed minimum withdrawal benefits (“GMWBs”) and/or guaranteed minimum death benefits (“GMDBs”) which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through “Change in the fair value of MRBs, net” and are excluded from APTOI.
Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI.
Other adjustments:
Other adjustments represent all other adjustments that are excluded from APTOI and includes the net pre-tax operating income (losses) from noncontrolling interests related to consolidated investment entities. The excluded adjustments include, as applicable:
•restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;
•non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles;
•separation costs;
•non-operating litigation reserves and settlements;
•loss (gain) on extinguishment of debt;
•losses from the impairment of goodwill; and
•income and loss from divested or run-off business.
The following table presents Corebridge’s operations by segment:
(in millions)Individual RetirementGroup RetirementLife InsuranceInstitutional MarketsCorporate & OtherEliminationsTotal CorebridgeAdjustmentsTotal Consolidated
Year Ended December 31, 2022
Premiums$235 $19 $1,864 $2,913 $82 $— $5,113 $(22)$5,091 
Policy fees741 415 1,564 194 — — 2,914 — 2,914 
Net investment income(a)
3,888 2,000 1,389 1,049 473 (41)8,758 818 9,576 
Net realized gains (losses)(a)(b)
— — — — 170 — 170 5,921 6,091 
Advisory fee and other income451 305 121 2 121 — 1,000 25 1,025 
Total adjusted revenues5,315 2,739 4,938 4,158 846 (41)17,955 6,742 24,697 
Policyholder benefits285 35 3,010 3,404 — — 6,734 (14)6,720 
Change in the fair value of market risk benefits, net— — — — — — — (958)(958)
Interest credited to policyholder account balances1,916 1,147 342 320 — — 3,725 7 3,732 
Amortization of deferred policy acquisition costs523 80 410 7 — — 1,020 — 1,020 
Non-deferrable insurance commissions351 123 72 20 2 — 568 — 568 
Advisory fee expenses141 124 1 — — — 266 — 266 
General operating expenses426 447 656 73 384 (2)1,984 339 2,323 
Interest expense— — — — 535 (51)484 50 534 
Net (gain) loss on divestitures— — — — — — — 1 1 
Total benefits and expenses3,642 1,956 4,491 3,824 921 (53)14,781 (575)14,206 
Noncontrolling interests— — — — (320)— (320)
Adjusted pre-tax operating income (loss)$1,673 $783 $447 $334 $(395)$12 $2,854 
Adjustments to:
Total revenue6,742 
Total expenses(575)
Noncontrolling interests320 
Income before income tax (benefit)$10,491 $10,491 
Year Ended December 31, 2021
Premiums$195 $22 $1,586 $3,774 $86 $— $5,663 $(10)$5,653 
Policy fees797 480 1,541 187 — — 3,005 — 3,005 
Net investment income(a)
4,334 2,413 1,621 1,155 443 (49)9,917 1,755 11,672 
Net realized gains (losses)(a)(b)
— — — — 701— 701 1,051 1,752 
Advisory fee and other income 592 337 110 2 134 — 1,175 — 1,175 
Total adjusted revenues5,918 3,252 4,858 5,118 1,364 (49)20,461 2,796 23,257 
Policyholder benefits317 31 2,842 4,183 — — 7,373 14 7,387 
Change in the fair value of market risk benefits, net— — — — — — — (447)(447)
Interest credited to policyholder account balances1,793 1,159 354 274 — — 3,580 (18)3,562 
Amortization of deferred policy acquisition costs451 78 416 6 — — 951 — 951 
Non-deferrable insurance commissions396 122 80 22 3 — 623 — 623 
Advisory fee expenses189 133 — — — — 322 — 322 
General operating expenses437 445 682 77 375 — 2,016 88 2,104 
Interest expense46 35 25 9 286 (47)354 35 389 
Loss on extinguishment of debt— — — — — — — 219 219 
Net (gain) loss on divestitures— — — — — — — (3,081)(3,081)
Net (gain) loss on Fortitude Re transactions— — — — — — — (26)(26)
Total benefits and expenses 3,629 2,003 4,399 4,571 664 (47)15,219 (3,216)12,003 
Noncontrolling interests— — — — (861)— (861)
Adjusted pre-tax operating income (loss)$2,289 $1,249 $459 $547 $(161)$(2)$4,381 
Adjustments to:
Total revenue2,796 
Total expenses(3,216)
Noncontrolling interests861 
Income before income tax (benefit)$11,254 $11,254 
(in millions)Individual RetirementGroup RetirementLife InsuranceInstitutional MarketsCorporate & OtherEliminationsTotal CorebridgeAdjustmentsTotal Consolidated
Year Ended December 31, 2020
Premiums$151 $19 $1,526 $2,564 $74 $— $4,334 $7 $4,341 
Policy fees861 443 1,384 186 — — 2,874 — 2,874 
Net investment income(a)
4,105 2,213 1,532 931 346 (43)9,084 1,432 10,516 
Net realized gains (losses)(a)(b)
— — — — 54— 54 (3,795)(3,741)
Advisory fee and other income 571 272 94 1 122 — 1,060 12 1,072 
Total adjusted revenues5,688 2,947 4,536 3,682 596 (43)17,406 (2,344)15,062 
Policyholder benefits411 74 3,219 2,886 — — 6,590 12 6,602 
Interest credited to policyholder account balances1,751 1,125 373 303 — — 3,552 (24)3,528 
Amortization of deferred policy acquisition costs556 15 25 5 — — 601 (58)543 
Non-deferrable insurance commissions334 117 119 31 3 — 604 — 604 
Advisory fee expenses205 111 — — — — 316 — 316 
General operating expenses427 488 624 79 309 (7)1,920 107 2,027 
Interest expense62 42 30 11 324 (34)435 55 490 
Loss on extinguishment of debt— — — — — — — 10 10 
Net (gain) loss on Fortitude Re transactions— — — — — — — 91 91 
Total benefits and expenses 3,746 1,972 4,390 3,315 636 (41)14,018 193 14,211 
Noncontrolling interests— — — — (194)— (194)
Adjusted pre-tax operating income (loss)$1,942 $975 $146 $367 $(234)$(2)$3,194 
Adjustments to:
Total revenue(2,344)
Total expenses193 
Noncontrolling interests194 
Income before income tax (benefit)$851 $851 
(a) Adjustments include Fortitude Re activity of and $6,841 million, $2,012 million and $(1,549) million for the years ended December 31, 2022 ,2021 and 2020, respectively.
(b) Net realized gains (losses) includes the gains (losses) related to the disposition of real estate investments.
Corebridge does not report total assets by segment, as we do not use this metric to allocate resources or evaluate segment performance.
The following table presents Corebridge’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area:
Total Revenues*Real Estate and Other Fixed Assets,
Net of Accumulated Depreciation
(in millions)202220212020202220212020
North America$24,160 $22,733 $14,642 $404 $286 $364 
International537 524 420 36 37 39 
Consolidated$24,697 $23,257 $15,062 $440 $323 $403 
*    Revenues are generally reported according to the geographic location of the legal entity. International revenues consist of revenues from Laya and AIG Life (United Kingdom).