v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

22. Income Taxes
RECENT TAX LAW CHANGES
The Inflation Reduction Act of 2022 (H.R. 5376), (the “Inflation Reduction Act”) includes a 15% corporate alternative minimum tax (“CAMT”) on adjusted financial statement income for corporations with average profits over $1 billion over a three-year period and a 1% stock buyback tax. In 2024, the U.S. Treasury and Internal Revenue Service (“IRS”) published proposed regulations with respect to the CAMT. On September 30, 2025, the IRS issued Notice 2025-46 and Notice 2025-49 which provide favorable interim guidance on tax consolidations. These Notices provide an option to calculate our CAMT liability based on the consolidated tax group while we’re subject to the waiting period discussed below, as well as certain other matters that do not have a significant impact on Corebridge. Our estimated CAMT liability will continue to be refined based on future guidance.
The One Big Beautiful Bill Act (H.R. 1) (“OBBB”) was signed into law on July 4, 2025. The tax provisions of the OBBB are not expected to have a material impact on Corebridge’s financial results.
BASIS OF PRESENTATION
Prior to the IPO, Corebridge Parent and certain U.S. subsidiaries were included in the consolidated federal income tax return of AIG as well as certain state tax returns where AIG files on a combined or unitary basis. Following the IPO, AIG owned less than 80% interest in Corebridge, resulting in tax deconsolidation of Corebridge from the AIG Consolidated Tax Group. Under the tax law, AGC and its directly owned life insurance subsidiaries (the “AGC Group”) will not be permitted to join in the filing of a U.S. consolidated federal income tax return with our other subsidiaries (collectively, the “Non-Life Group”) for the five-year waiting period. Instead, the AGC Group is expected to file separately as members of the AGC Group consolidated U.S. federal income tax return during the five-year waiting period. Following the five-year waiting period, the AGC Group is expected to join the U.S. consolidated federal income tax return with the Non-Life Group for the 2028 tax year.
Under the U.S. tax rules, tax attribute carryforwards at the time of tax deconsolidation remain with the relevant Corebridge entities and will be available for utilization by the respective Corebridge U.S. federal tax filing groups following tax deconsolidation from AIG. Our tax attribute carryforwards will continue to be adjusted based on changes to prior year tax returns in which Corebridge entities were included as part of the AIG consolidated federal income tax return.
We calculate our provision for income taxes using the asset and liability method. This method considers the future tax consequences of temporary differences between the financial reporting and the tax basis of assets and liabilities measured using currently enacted tax rates. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
RECLASSIFICATION OF CERTAIN TAX EFFECTS FROM AOCI
We use an item-by-item approach to release the stranded or disproportionate income tax effects in AOCI related to our available-for-sale securities. Under this approach, a portion of the disproportionate tax effects is assigned to each individual security lot at the date the amount becomes lodged. When the individual securities are sold, mature or are otherwise impaired on an other-than-temporary basis, the assigned portion of the disproportionate tax effect is reclassified from AOCI to income (loss) from operations.
EFFECTIVE TAX RATE
The following table presents income (loss) before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:
Years Ended December 31,
(in millions)202520242023
U.S.$(533)$2,765 $972 
Foreign(8)38 (32)
Total$(541)$2,803 $940 
The following table presents the income tax expense (benefit) attributable to pre-tax income (loss):
Years Ended December 31,
(in millions)202520242023
U.S. and Foreign components of actual income tax expense:
U.S. Federal:
Current$(487)$(43)$302 
Deferred347 624 (404)
State:
Current(2)9 9 
Deferred(10)6 4 
Foreign:
Current1 (1)(5)
Deferred— 5 (2)
Total$(151)$600 $(96)
The following table presents the income taxes paid (net of refunds):
Years Ended December 31,
(in millions)202520242023
U.S. Federal$203 $240 $(20)
State(11)14 38 
Foreign— (2)2 
Total$192 $252 $20 
Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:
Years Ended December 31,
(in millions)202520242023
State:
Florida**$27 
Illinois**$2 
Maryland$(16)**
Oregon**$1 
Virginia$(10)**
Foreign:
Ireland**$2 
*    Jurisdictions without an amount presented are below the threshold required for disclosure.
Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:
Years Ended December 31,202520242023
(dollars in millions)Pre-Tax
Income
(Loss)		Tax
Expense/
(Benefit)		Percent of
Pre-Tax
Income (Loss)		Pre-Tax
Income
(Loss)		Tax
Expense/
(Benefit)		Percent of
Pre-Tax
Income (Loss)		Pre-Tax
Income		Tax
Expense/
(Benefit)		Percent of
Pre-Tax
Income (Loss)
U.S. federal income tax at statutory rate$(541)$(114)21 %$2,803 $589 21 %$940 $197 21 %
Adjustments:
State and local income tax, net of federal (national) income tax effect*(9)1.7 14 0.5 — 10 1.1 
Foreign tax effects— — — — (5)(0.5)
Tax credits
Foreign tax credits(23)4.3 (11)(0.4)— (11)(1.2)
Investment tax credits(12)2.2 (8)(0.3)— — 
Changes in valuation allowances88 (16.3)94 3.4 — 11 1.2 
Nontaxable or nondeductible items
Dispositions of Subsidiaries— — 4 0.1 — (99)(10.5)
Noncontrolling interest5 (0.9)6 0.2 — 14 1.5 
Share based compensation payments excess tax deduction(2)0.4 (4)(0.1)— (10)(1.1)
Dividends received deduction(43)7.9 (48)(1.7)— (59)(6.3)
Other nontaxable and nondeductible items2 (0.4)12 0.4 2 0.2 
Adjustments to prior year tax returns related to nontaxable or nondeductible items(14)2.6 — — — (56)(6.0)
Changes in unrecognized tax benefits— — (17)(0.6)— — — 
Other
Reclassifications from accumulated other comprehensive income(29)5.4 (31)(1.1)— (50)(5.3)
Adjustments to deferred tax assets— — — — (40)(4.3)
Consolidated total amounts$(541)$(151)27.9 %$2,803 $600 21.4 %$940 $(96)(10.2)%
*    State taxes in Illinois, Florida, and Mississippi made up the majority (greater than 50 percent) of the tax effect in this category.
For the year ended December 31, 2025, there was a tax benefit on loss from operations, resulting in an effective tax rate on loss from operations of 27.9%. The effective tax rate on loss from operations differs from the statutory tax rate of 21% primarily due to tax benefits of $43 million dividends received deduction, $29 million of reclassifications from accumulated other comprehensive income to income from operations related to the disposal of available-for-sale securities, $35 million of tax credits, $14 million primarily associated with adjustments to prior year tax returns, including interest and $9 million related to state and local income taxes. These tax benefits were partially offset by tax charges of $88 million associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards.
For the year ended December 31, 2024, there was a tax expense on income from operations, resulting in an effective tax rate on income from operations of 21.4%. The effective tax rate on income from operations differs from the statutory tax rate of 21% primarily due to tax charges of $92 million associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, and $14 million related to state and local income taxes. These tax charges were partially offset by tax benefits of $48 million dividends received deduction, $31 million of reclassifications from accumulated other comprehensive income to income from operations related to the disposal of available-for-sale securities,$19 million of tax credits, and $17 million primarily associated with the release of reserves for uncertain tax positions related to audit activity by the IRS.
For the year ended December 31, 2023, there was a tax benefit on income from operations, resulting in an effective tax rate on income from operations of (10.2)%. The effective tax rate on income from operations differs from the statutory tax rate of 21% primarily due to tax benefits of $95 million of associated with the establishment of outside basis as a result of the held-for-sale designation of Laya and AIG Life, $56 million associated with tax adjustments related to prior year returns, $59 million dividends received deduction, $50 million reclassifications from accumulated other comprehensive income to income from operations related to the disposal of available-for-sale securities, $40 million adjustments to deferred tax assets, and $11 million of tax credits. These tax benefits were partially offset by tax charges of $14 million as a result of noncontrolling interest, $10 million related to state and local income taxes, and $11 million additional valuation allowance establishment.
The following table presents the components of the net deferred tax assets (liabilities):
December 31,
(in millions)20252024
Deferred tax assets:
Losses and tax credit carryforwards$1,420 $877 
Basis differences on investments2,336 2,944 
Life policy reserves740 658 
Investments in foreign subsidiaries— 15 
Fixed assets and intangible assets1,190 1,566 
Other343 416 
Employee benefits19 60 
Unrealized losses related to available-for-sale debt securities2,944 4,102 
Market risk benefits1,216 902 
Total deferred tax assets10,208 11,540 
Deferred tax liabilities:
Fortitude Re funds withheld embedded derivative$(723)$(815)
Accruals not currently deductible, and other(109)(118)
Deferred policy acquisition costs(1,555)(1,553)
Total deferred tax liabilities(2,387)(2,486)
Net deferred tax assets before valuation allowance7,821 9,054 
Valuation allowance(1,478)(1,548)
Net deferred tax assets (liabilities)$6,343 $7,506 
The following table presents U.S. federal income tax losses and credits carryforwards:
December 31, 2025Carryforward Period Ending Tax Year
(in millions)
Gross
Total Tax Effected
2028202920302031203520362037Indefinite
Deferred tax assets:
Net operating loss carryforwards
$1,332 $280 $5 $— $— $32 $3 $4 $30 $206 
Capital loss carryforwards
2,915 612 — 343 269 — — — — — 
Other carryforwards
1,876 394 — — — — — — — 394 
Total U.S. federal tax losses and credit carryforwards on a U.S. GAAP basis $6,123 $1,286 $5 $343 $269 $32 $3 $4 $30 $600 
We have net operating loss carryforwards of $134 million, tax effected, for certain state and local jurisdictions.
A valuation allowance has been recorded on net operating loss carryforwards of the Non-Life Group and a portion of our realized capital loss carryforwards, as discussed below.
ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCE
The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.
Recent events, including multiple changes in target interest rates by the Board of Governors of the Federal Reserve System and significant market volatility, impacted actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses and capital loss carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macroeconomic and Corebridge-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies.
Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies, impact of settlements with taxing authorities, and any changes to interpretations and assumptions related to the impact of recent tax law changes, could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. As discussed above, during the five-year waiting period following the IPO, the AGC Group will file separately from the Non-Life Group as members of the AGC consolidated U.S. federal income tax return. Each separate U.S. federal tax filing group or separate U.S. tax filer is required to consider this five-year waiting period when assessing realization of their respective deferred tax assets including net operating loss and tax credit carryforwards.
Our separation from AIG resulted in an “ownership change” for U.S. federal income tax purposes under Section 382 of the Code. As a result of the ownership change, a limitation has been imposed upon the utilization of our U.S. net operating loss carryforwards and certain built-in losses and deductions to offset future taxable income. Based on our updated valuation, our utilization is limited to approximately $847 million per year. These limitation amounts accumulate for future use to the extent they are not utilized in a given year during the five-year period following the ownership change. We consider the limitation when assessing realization of our deferred tax assets, and if we believe that deferred tax assets consisting of the pre-ownership change net operating losses and other built-in losses and deductions are no longer more-likely-than-not to be realized, a valuation allowance will be provided. As a result of the Sec. 382 limitation, we wrote off $4 million of net operating losses which were deemed worthless in 2025, on which a valuation allowance had been previously established.
For the year ended December 31, 2025, recent changes in market conditions, including changes in interest rates, impacted the unrealized tax capital gains and losses in the U.S. Life insurance companies’ available-for-sale securities portfolio, resulting in a deferred tax asset. The deferred tax asset relates to the unrealized capital losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying pool of securities to recovery. As of December 31, 2025, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized capital losses that are not more-likely-than-not to be realized. For the year ended December 31, 2025, we recorded an increase in valuation allowance of $11 million related to net operating loss carryforwards and other ordinary deferred tax assets and net (decrease) of $(83) million related to investment losses, of which $72 million was recorded through the Consolidated Statements of Income (Loss) and $(155) million was recorded in OCI. As of December 31, 2025, we have a U.S. federal valuation allowance of $1.3 billion, of which $160 million is related to net operating loss carryforwards and other ordinary deferred tax assets and $1.2 billion ($1.0 billion reflected in AOCI) is related to realized and unrealized capital losses.
TAX EXAMINATIONS AND LITIGATION
Corebridge Parent and certain U.S. subsidiaries are included in a consolidated U.S. federal income tax return with AIG through the date of IPO (short-period tax year 2022), and income tax expense is recorded, based on applicable U.S. and foreign laws.
The AIG Consolidated Tax Group is currently under IRS examination for the tax years 2011 through 2019 and is continuing to engage in the appeals process for years 2007 through 2010.
We are periodically advised of certain IRS and other adjustments identified in AIG's consolidated tax return which are attributable to our operations. Under our tax sharing arrangement, we provide a charge or credit for the effect of the adjustments and the related interest in the period we are advised of such adjustments and interest.
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES
The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits:
Years Ended December 31,
(in millions)202520242023
Gross unrecognized tax benefits, beginning of year$3 $20$20
Increases in tax positions for prior years— ——
Decreases in tax positions for prior years— (17)—
Increases in tax positions for current year— ——
Settlements— ——
Gross unrecognized tax benefits, end of year$3$3$20
At December 31, 2025, 2024 and 2023, Corebridge subsidiaries had unrecognized tax benefits, excluding interest and penalties, which were $3 million, $3 million and $20 million, respectively, all of which would favorably affect the effective tax rate if recognized.
Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2025, 2024 and 2023 we had no accrued liabilities for the payment of interest and penalties. There was no interest activity related to unrecognized tax benefits for the years ended December 31, 2025, 2024, and 2023.
Listed below are the tax years that remain subject to examination by major tax jurisdictions:
December 31, 2025Open Tax Years
Major Tax Jurisdiction
United States
2007-2024
United Kingdom
2023-2024