Corebridge Financial Business Model Canvas

Corebridge Financial actively partners with reinsurers to effectively manage and diversify its insurance risk. A prime example of this strategy is the significant variable annuity reinsurance transaction with Venerable, which was completed in 2023 and involved approximately $27 billion of reserves. This type of alliance is crucial for optimizing capital requirements and stabilizing earnings.

By transferring portions of its underwriting risk to reinsurers, Corebridge aims to reduce its overall risk profile and enhance the quality of its earnings. This strategic approach allows the company to maintain a more robust financial position and focus on core growth areas.

• Risk Diversification: Reinsurance allows Corebridge to spread its insurance liabilities across multiple parties, mitigating the impact of large or unexpected claims.
• Capital Optimization: By offloading certain risks, Corebridge can reduce the amount of capital it needs to hold against those risks, freeing up capital for other strategic initiatives.
• Earnings Stabilization: Reinsurance can smooth out the volatility of earnings that might otherwise result from fluctuations in mortality, morbidity, or investment performance.
• Venerable Transaction Impact: The 2023 deal with Venerable, transferring $27 billion in reserves, exemplifies Corebridge's commitment to proactive risk management and capital efficiency.

Corebridge Financial leverages a strategic partnership with Blackstone Inc., a global leader in alternative asset management. This collaboration is specifically designed to tap into Blackstone's extensive capabilities in originating privately sourced fixed-income assets. The aim is to bolster Corebridge's investment portfolio with attractive, yield-enhancing opportunities.

This alliance directly supports Corebridge's objective of improving risk-adjusted returns. By accessing Blackstone's expertise, Corebridge can more effectively implement liability-driven investing strategies, a crucial element for insurance companies. This partnership provides Corebridge with enhanced access to a diverse range of high-quality fixed-income investments, which are essential for meeting long-term financial obligations.

• Blackstone Partnership: Corebridge collaborates with Blackstone to access privately sourced fixed-income assets.
• Investment Enhancement: This partnership aims to boost risk-adjusted returns for Corebridge.
• Liability-Driven Investing: The collaboration supports Corebridge's strategy of matching assets with liabilities.
• Access to Quality Assets: It extends Corebridge's reach into high-quality fixed-income investment opportunities.

Corebridge Financial leverages its significant brand reputation and the trust it has cultivated as one of the largest and most established life insurance and retirement solutions providers in the U.S. This strong standing directly translates into client confidence and acts as a powerful magnet for new customers seeking financial security.

The company's reputation for reliability and financial strength is a crucial differentiator in the competitive financial services landscape. This perception of stability is paramount for individuals and businesses entrusting their long-term financial well-being to Corebridge.

• Established Market Presence: Corebridge is recognized as a major player in the U.S. life insurance and retirement solutions market, underpinning its brand authority.
• Client Confidence: A strong reputation fosters trust, encouraging existing clients to remain loyal and attracting new ones seeking dependable financial partners.
• Financial Security Perception: Corebridge's image of reliability and financial stability is a key competitive advantage, reassuring customers about the safety of their investments.

Corebridge Financial's ability to operate hinges on its extensive portfolio of licenses and regulatory approvals. These are not just checkboxes; they are the bedrock that allows the company to legally offer its diverse suite of insurance and retirement solutions across multiple markets. For instance, in 2024, maintaining robust capital levels well above regulatory targets, such as the risk-based capital (RBC) ratios for its insurance subsidiaries, remains a critical operational requirement.

These approvals are dynamic, requiring constant attention to ensure ongoing compliance with evolving financial regulations. Corebridge's commitment to maintaining good standing with bodies like the U.S. Securities and Exchange Commission (SEC) and state insurance departments is essential for uninterrupted business operations and customer trust. This includes adherence to solvency requirements and product filing mandates.

Key resources in this category include:

• Broad Geographic Licensing: Permits to operate and sell products in all target states and international markets.
• Product-Specific Approvals: Authorizations for each insurance and annuity product offered, ensuring compliance with design and disclosure rules.
• Capital Adequacy Certifications: Demonstrations to regulators that the company holds sufficient capital to meet its obligations, often exceeding statutory minimums. For example, maintaining RBC ratios above 300% for key entities.
• Good Regulatory Standing: Absence of significant enforcement actions or sanctions from regulatory bodies, reflecting a history of compliance.

Corebridge Financial prioritizes keeping clients in the loop through proactive communication. This includes regular newsletters, timely market updates, and personalized alerts regarding policy performance and emerging opportunities. For instance, in 2024, Corebridge saw a significant increase in client engagement with their digital communication channels, with open rates on their policy update emails averaging 35%, demonstrating a strong client interest in staying informed.

• Newsletters and Market Insights: Regular dissemination of financial market trends and economic outlooks.
• Personalized Alerts: Timely notifications on policy changes, performance updates, and relevant investment opportunities.
• Client Education Resources: Providing accessible content to enhance financial literacy and understanding of products.
• Feedback Mechanisms: Establishing channels for clients to provide input and engage with the company.

Corebridge Financial prioritizes robust customer service and claims support, maintaining responsive channels for inquiries and policy adjustments. Their commitment to efficient claims processing is a cornerstone of client trust and loyalty.

• Customer Service Channels: Corebridge offers accessible avenues for policyholders to manage their accounts and seek assistance.
• Claims Processing Efficiency: The company focuses on streamlining the claims process to ensure timely payouts and support for beneficiaries.
• Financial Support: From 2020 through 2024, Corebridge Financial paid out a significant $51 billion in claims and benefits, demonstrating their capacity to meet client obligations.
• Client Trust: By providing empathetic and timely assistance, Corebridge aims to foster long-term relationships and reinforce client confidence in their services.

Financial advisors and broker-dealers are crucial intermediaries for Corebridge Financial, acting as both a distribution channel and a distinct customer segment. Corebridge must actively court these professionals by offering competitive products, robust sales support, and user-friendly tools. For instance, in 2024, the demand for accessible digital platforms for product quoting and application submission remains high among advisors, with many reporting that streamlined digital processes significantly influence their product selection.

These intermediaries prioritize several key factors when choosing to partner with an annuity provider. Their needs are centered on the ability to effectively serve their own clients, which translates to a demand for product competitiveness in terms of features and pricing, a simplified and efficient "ease of doing business," and dependable, responsive service. A recent industry survey indicated that over 70% of financial advisors consider the quality of a carrier's technology platform a critical factor in their distribution decisions for 2024.

• Product Competitiveness: Offering innovative annuity solutions with attractive features and competitive rates is paramount.
• Ease of Doing Business: Streamlined onboarding, digital tools for quoting and illustrations, and efficient application processing are essential.
• Reliable Service and Support: Prompt responses from wholesalers, accessible training, and dependable back-office support are highly valued.
• Marketing and Sales Tools: Providing advisors with effective marketing materials and sales aids helps them promote Corebridge products to their clients.

High-net-worth individuals represent a crucial customer segment for Corebridge Financial, characterized by their intricate financial needs. These affluent clients typically require advanced retirement planning strategies, often involving sophisticated annuity products designed for wealth accumulation and income generation. Furthermore, they seek substantial life insurance coverage, not just for personal protection but as a vital tool for effective estate planning and seamless wealth transfer across generations. In 2024, the global high-net-worth population reached approximately 62.5 million individuals, managing an estimated $250 trillion in wealth, highlighting the significant market opportunity.

These clients demand highly customized financial solutions tailored to their unique circumstances and often prefer direct engagement with specialized financial advisors. Their primary objectives revolve around preserving existing wealth, achieving sustained growth, and optimizing their financial strategies for maximum tax efficiency. This segment values personalized advice and comprehensive wealth management services that address both current needs and long-term aspirations.

• Complex Financial Needs: Require advanced retirement planning and sophisticated annuity products.
• Estate Planning & Wealth Transfer: Seek substantial life insurance coverage for legacy building.
• Customized Solutions: Value personalized strategies and direct access to specialized advisors.
• Wealth Preservation & Growth: Focus on tax-efficient methods for maintaining and increasing assets.

Corebridge Financial generates revenue through fees collected for the administration and management of group retirement plans offered to institutional clients. These fees are a crucial component of their institutional business, contributing to a stable and predictable income stream.

The fee structure can encompass various charges, including asset-based fees tied to the value of assets under management, record-keeping fees for managing participant accounts, and other service charges related to plan operation. This diversification within their business model, particularly the inclusion of Group Retirement, strengthens their overall fee income generation.

• Asset-Based Fees: Percentage of assets managed within group retirement plans.
• Record-Keeping Fees: Charges for maintaining participant accounts and processing transactions.
• Service Charges: Fees for additional administrative and support services provided to employers.

Beyond the core premiums, Corebridge Financial generates significant revenue through various product and service fees. These ancillary charges are often tied to specific features, optional riders, or supplementary services that enhance the value proposition of their insurance and retirement products.

For the year ended December 31, 2024, Corebridge's fee income reached $2.1 billion. This demonstrates the substantial contribution of these fees to the company's overall revenue stream, reflecting the diverse ways customers engage with and utilize their offerings.

• Surrender Charges: Fees incurred when policyholders withdraw funds from certain products, like annuities, before a specified period.
• Policy Fees: Annual or periodic charges applied to maintain insurance policies or retirement accounts, covering administrative costs.
• Advisory Service Charges: Fees for specialized financial advice, planning, or investment management services offered alongside core products.
• Rider Fees: Charges for optional benefits or enhancements added to a base policy, such as guaranteed death benefits or living benefits.