Corebridge Financial highlighted strong underlying performance and improving earnings momentum in the final quarter of 2025, despite a net loss of $366 million in 2025, primarily due to higher losses from embedded derivatives withheld by the Fortitude Re fund and changes in the fair value of market risk benefits.
The Life and Retirement Group’s net income in the fourth quarter of 2025 was $814 million, compared with $2.17 billion in the same period last year, and adjusted operating income after tax reached $626 million.
For the full year 2025, Fortitude Re’s adjusted operating income after tax totaled $2.4 billion, highlighting the resilience of core performance.
Meanwhile, premiums and deposits rose about 4% to $41.7 billion in 2025, and the company returned $2.6 billion to shareholders through stock buybacks and dividends.
Readers may recall that the impact of Fortitude Re stems from a capital withholding reinsurance arrangement under which Corebridge surrenders certain legacy life and annuity liabilities but retains the underlying assets.
Accounting rules treat parts of this structure as embedded derivatives that must be marked to market on a quarterly basis.
As a result, fluctuations in interest rates, credit spreads and asset values could generate significant non-cash gains or losses, resulting in fluctuations in GAAP net income, even if the underlying business remains fundamentally sound.
Marc Costantini, President and CEO of Corebridge, commented: “Corebridge delivered strong results in 2025 with record sales of $42 billion in products that help our customers protect, grow and secure their wealth.
“Customer demand for financial security has never been greater, and Corebridge is uniquely positioned to win with our diverse product suite, strong distribution network and commitment to industry-leading customer service.
“Compared to the same period last year, all of our key metrics improved – operating earnings per share, return on equity and return on shareholder capital. Additionally, today we are pleased to announce that our Board of Directors has approved a 4% increase in our common stock dividend, reflecting our continued confidence in our cash generation capabilities.
“I’m very excited about the future of this great franchise. Our opportunity and commitment to create sustained value for our customers, distribution partners and shareholders are as strong as ever. We have market tailwinds, hard-to-replicate competitive advantages, and a world-class team ready to demonstrate what we can do.”