- Corebridge Financial exits Individual Retirement variable annuities with a $2.8 billion transaction.
- Transaction includes $2.1 billion net distributable proceeds, primarily for share repurchases.
- Board authorizes a $2 billion increase to the share repurchase program.
Corebridge Financial, Inc. (CRBG, Financial) has announced a significant agreement with CS Life Re, a subsidiary of Venerable Holdings, Inc., to reinsure its variable annuities in the Individual Retirement business. This transformative transaction, valued at $2.8 billion, marks the company's full exit from this segment. The comprehensive reinsurance deal encompasses $51 billion in total account value as of March 31, 2025.
The agreement will allow Corebridge to enhance its capital return strategy with $2.1 billion of net distributable proceeds post-tax, the majority of which will be directed towards accelerating share repurchases. In line with this, the Board of Directors has authorized a $2 billion boost to the existing share repurchase program.
Kevin Hogan, President and CEO of Corebridge, emphasized the strategic nature of the transaction, noting that it reinforces the company's financial objectives while mitigating risk. Corebridge will continue to operate one of the broadest annuity product platforms, maintaining its commitment to diverse retirement solutions.
The transaction includes comprehensive counterparty protections, such as comfort trusts and hedging arrangements, and is expected to close in stages throughout the third and fourth quarters of 2025, pending regulatory approvals.
