The reconciliation of such measures to the most comparable GAAP figures is included in our earnings release, financial supplement, and earnings presentation, all of which are available on our website at investors.corebridgefinancial.com. Turning to the second quarter highlights, we delivered strong results consistent with our full-year guidance. Consistent with guidance, our adjusted return on equity, excluding VII, was up 90 basis points year-over-year to 10.9%. In the second quarter, we returned $412 million of capital to shareholders, including $300 million of share repurchases, for a year-to-date normalized payout ratio of 84%.
Furthermore, on a rolling 12-month basis, which adjusts for seasonal fluctuations and the lumpy nature of the pension risk transfer business, we saw total company sales growth by 4% year-over-year. This is a testament to our product depth and commitment to margin integrity across cycles. In the quarter, our wealth management assets rose to $20 billion, an 18% increase year-over-year. We continue to see a $30 billion growth opportunity by further capturing IRA rollovers and consolidating household assets within our current customer base.
In the quarter, we delivered run rate earnings above our typical guide, reflecting strong underwriting results. Our GIC book represents 5% of our general account, compared to 10%-15% for major competitors, demonstrating ample room for additional growth. The appetite for de-risking solutions remains strong, and we expect the double-digit reserve growth we've achieved since 2021 to continue. Despite this growth, new Corebridge research finds that only 28% of people are confident spending in retirement, with fears of running out of money being the top concern.
| Metric | Period | Current guidance |
|---|---|---|
| Individual Retirement base spread income | FY2026 | ~$2.55 billion (reaffirmed); single-digit spread compression continuing, bottoming at end of 2026 |
| Variable investment income | H2 2026 | Expected to remain below long-term target for the remainder of the year |
| Share repurchases | H2 2026 | ~$350 million (approximately $1.9 billion for full-year 2026; over $4 billion across 2025-2026) |
| Pension risk transfer | H2 2026 | Activity expected to be weighted to the back half, with double-digit reserve growth continuing |
| Combined company (post-merger) | 2027 | $5 billion earnings, $4 billion cash generation, ROE >15%, $500 million cost synergies |
| Merger close | By year-end 2026 | On track; shareholder vote approved, antitrust and FINRA approvals complete, state/international filings submitted |
| Metric | YoY | Note |
|---|---|---|
| Operating EPS | $1.12 (vs $1.22); run-rate $1.35 (+16%) | VII underperformance weighed on reported operating EPS; run-rate (normalizing alternatives) rose 16%. |
| Adjusted after-tax operating income | $512M (vs $672M) | Lower variable investment income; adjusted pre-tax operating income $664 million versus $842 million. |
| GAAP net loss / EPS | $(16)M / $(0.04) | Non-operating realized losses and reinsurance-related items; improved from a $(660) million loss a year ago. |
| Core sources of income | $1,568M (+5%) | Base spread income $898M (+4%, asset repositioning and business growth) and fee income +15% (higher AUMA and market tailwinds); underwriting margin -1%. |
| Adjusted ROE | 11.4% (13.8% run-rate) | Excluding VII, up 90 bps to 10.9%; within the 12%-14% targeted range on a run-rate basis. |
| Premiums and deposits | $9.1B (-13%) | Lower fixed and fixed-index annuity sales and lumpy PRT; total sales up 13% sequentially and up 4% on a rolling-12-month basis. |
| Institutional Markets APTOI | +36% | 17% reserve expansion and 12% AUMA growth; $1.8 billion of GIC issuances; $2.6 billion of segment sales. |
| Life Insurance sales / APTOI | Sales $870M (up); run-rate APTOI $122M above guide | Favorable mortality and underwriting; automated underwriting on 80%+ of new business. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Equitable merger | Announced | Shareholder vote approved; antitrust and FINRA clearances complete, state/international filings submitted, first three org levels set; on track to close by year-end with 2027 targets of $5B earnings, $4B cash, >15% ROE, and $500M cost synergies, plus revenue-synergy upside (e.g., VUL product adoption). | — |
| Variable investment income / alternatives | Below target early in Q2 | PE marks drove the miss (software decline, geopolitics) with a large unrealized-gain backlog not yet realized; alternatives are under 3% of the balance sheet, matched to long-tail liabilities; expected below target for the rest of 2026. | — |
| Capital allocation and dynamic distribution | Judicious allocator | Management shifts capital across retail and Institutional Markets to the best risk-adjusted returns (leaning into Institutional in Q2 as retail was competitive), prioritizing margin integrity over volume. | — |
| Institutional Markets growth | Growth engine | GIC/FABN book only 5% of the general account (versus 10%-15% at peers) offers a long runway, and PRT activity is expected to be back-half weighted with continued double-digit reserve growth; the combined balance sheet should enable larger PRT case sizes. | — |
| Life growth and mortality | Top-tier term provider | Sustained favorable mortality and a goal to roughly double sales over time by improving distribution connectivity and becoming easier to do business with; the merger adds a VUL product chassis. | — |
| Investment portfolio repositioning | High quality (A-, 96% IG) | Sold lower-yielding high yield, EM, and private assets and rotated into investment-grade public assets, RMBS, and private ABS (over half single-A or higher), raising yield while maintaining or improving credit quality; positive credit migration continues. | — |
| Origination and Japan optionality | Blackstone/BlackRock partnerships | AllianceBernstein will add ~$100 billion of AUM over time (complementary to a $92.5 billion Blackstone mandate), and early-stage (third/fourth-inning) discussions with Nippon Life on co-manufacturing Japanese annuities are progressing. | — |