Corebridge Financial closed the final phase of its variable annuity reinsurance agreement with Venerable Holdings on January 5 2026, completing the reinsurance of all Individual Retirement variable annuities issued by its subsidiary United States Life Insurance Company (USL). The deal also includes the sale of the related investment adviser and manager, SAAMCo, to Venerable, marking the culmination of a series of transactions that began with the August 2025 reinsurance of American General Life Insurance Company’s (AGL) variable annuities.
The transaction is valued at $2.8 billion, of which Corebridge expects $2.1 billion in net proceeds after tax. The company plans to deploy the majority of that cash for accelerated share repurchases, a move that aligns with its long‑standing commitment to returning capital to shareholders. The net proceeds also provide a significant buffer that will further de‑risk Corebridge’s balance sheet, reducing exposure to the volatility inherent in variable annuity products.
Corebridge’s CEO, Kevin Hogan, described the deal as “transformative” and emphasized that it “reaffirms our financial targets while reducing risk and maintaining our diversified business model.” The transaction is part of a broader strategy to simplify the company’s operations by exiting legacy variable annuity business, thereby improving earnings quality and creating a lower‑risk profile. By shedding this segment, Corebridge can focus on its core retirement and life insurance offerings, which have shown more stable performance.
The reinsurance deal removes a segment that has historically been a source of earnings volatility. While the variable annuity business contributed to revenue growth in prior periods, it also exposed Corebridge to significant underwriting risk. The transaction’s impact on other segments—Group Retirement, Life Insurance, and Institutional Markets—will be indirect; the company’s balance sheet will be less leveraged, and its capital allocation flexibility will increase. This shift is expected to support more consistent profitability across the remaining segments.
Corebridge’s recent quarterly results illustrate the context for the deal. In Q4 2024, the company reported a net income of $2.2 billion, or $3.80 per share, while Q3 2025 saw a net income of $144 million, or $0.27 per share. The variable annuity exit is a strategic response to the mixed performance of its legacy products and a move to strengthen its financial position ahead of future growth initiatives.
By converting a large portion of its variable annuity exposure into reinsurance and selling SAAMCo, Corebridge not only reduces risk but also positions itself to accelerate shareholder returns. The transaction underscores the company’s commitment to a leaner, more focused business model and provides a clear path for capital deployment in the near term.
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