Corebridge Financial announced a transformative agreement with CS Life Re, a subsidiary of Venerable Holdings, Inc., to reinsure all the variable annuities of its Individual Retirement business. This transaction encompasses an account value totaling $51 billion as of March 31, 2025, marking a full exit from this segment of its Individual Retirement variable annuities.
The transaction is valued at $2.8 billion, comprising both ceding commission and capital release, and is expected to generate approximately $2.1 billion of net distributable proceeds after-tax for Corebridge. These proceeds are slated to accelerate the company's capital management objectives, with a substantial majority intended for share repurchases.
In connection with this transaction, Corebridge's Board of Directors approved a $2 billion increase to its share repurchase authorization, bringing the total plan term monetary value authorization to $7 billion. This strategic move is designed to deliver significant value for shareholders by reducing risk, improving the quality of earnings, and driving higher distributions, while reaffirming the company's financial targets and maintaining its diversified business model.
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