Corebridge Financial (CRBG) risk factors, 2025 10-K

Risks Relating to Market Conditions

1. 01We are exposed to risk from changes in interest rates
2. 02We are exposed to credit spread risk primarily as a result of market price volatility and investment risk associated with the fluctuation in credit spreads
3. 03Our business is highly dependent on economic and capital market conditions
4. 04We are exposed to risk from equity market declines or volatility
5. 05Equity market declines and market volatility can negatively impact the value of and returns on our equity investments, including private equity which could in turn reduce the statutory surplus of certain of our insurance company subsidiaries
6. 06We are subject to the risk of declining real estate values which can impact the value of real estate equity, mortgage loans, structured securities and other assets

Risks Relating to Insurance Risk and Related Exposures

1. 07The amount and timing of insurance liability claims are difficult to predict
2. 08Reinsurance may not be available or economical and may not be adequate to protect us against losses
3. 09Further, we face the risk of financial responsibility for risks related to assumed reinsurance, including claims made by the ceding company
4. 10We are exposed to risk from our agreements with Fortitude Re

Risks Relating to Our Investment Portfolio, Liquidity, Capital and Credit

1. 11Gross unrealized losses on fixed maturity securities may be realized or result in future impairments
2. 12Corebridge Parent’s ability to access funds from our subsidiaries is limited
3. 13We have incurred and may incur additional indebtedness
4. 14Our ability to make payments on and to refinance our existing or future indebtedness will depend on our ability to generate cash in the future from operations, financing or asset sales
5. 15We may not be able to generate cash to meet our needs due to the illiquidity of some of our investments
6. 16Our valuation of investments and derivatives involves the application of methodologies and assumptions to derive estimates that may differ from actual experience
7. 17The IFS ratings of our insurance companies or our credit ratings could be downgraded
8. 18We are exposed to risks from our participation in repurchase, securities lending and other collateralized programs
9. 19We are exposed to counterparty credit risk
10. 20In the event of a credit risk event such as an insolvency of, or the appointment of a receiver to rehabilitate or liquidate, a significant competitor, such appointment may impact consumer confidence in the products and services we offer, which could negatively impact our business

Risks Relating to Business and Operations

1. 21Pricing for our products is subject to our ability to adequately assess risks and estimate losses
2. 22Guarantees within certain of our products may increase the volatility of our results
3. 23We are exposed to risks from our use of derivative instruments to hedge market risks associated with our liabilities
4. 24We may experience difficulty in marketing and distributing our Individual Retirement and Life Insurance products and the use of third parties may result in additional liabilities
5. 25We may experience difficulty in sales and asset retention with respect to our Retirement Services business
6. 26Third parties we rely upon to provide certain business and administrative services may not perform as anticipated
7. 27We are exposed to risks from our arrangements with Blackstone, BlackRock and any other asset manager we engage. Furthermore, historical performance should not be relied on as a predictor of future results
8. 28We may be unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data
9. 29Our reliance on, and third party use of, AI exposes us to risks
10. 30We may face increasing scrutiny and evolving expectations from investors, regulators, customers and other stakeholders regarding environmental, social and governance matters
11. 31Our risk management policies, standards and procedures may prove to be ineffective and leave us exposed to unidentified or unanticipated risk
12. 32We may be subject to significant legal, governmental or regulatory proceedings
13. 33We face intense competition in each of our business lines and technological changes may present new and intensified challenges to our business
14. 34Catastrophes, including those associated with climate change and pandemics, may adversely affect our business and financial condition
15. 35Business or asset acquisitions and dispositions may expose us to certain risks
16. 36We may not be able to protect our intellectual property and may be subject to infringement claims

Risks Relating to Regulation

1. 37Our business is heavily regulated
2. 38New domestic or international laws and regulations, or new interpretations of current laws and regulations, may affect our ability to operate efficiently or compete effectively
3. 39Nippon’s relationship with us may result in us needing to comply with additional regulatory requirements
4. 40Changes in tax laws could reduce demand in the United States for life insurance and annuity contracts, which could reduce our income due to lower sales of these products or changes in customer behavior, including potential increased surrenders of in-force business

Risks Relating to Estimates and Assumptions

1. 41Estimates, assumptions or data used in the preparation of financial statements and certain modeled results may differ materially from actual experience
2. 42Our productivity improvement initiatives may not yield our expected expense reductions and improvements in operational and organizational efficiency
3. 43Our deferred tax assets may not be realized

Risks Relating to Employees

1. 44We may not be able to attract and retain the key employees and highly skilled people we need to support our business
2. 45Employee error and misconduct may be difficult to detect and prevent and may result in significant losses

Risks Relating to Our Relationships with Key Stockholders

1. 46We rely on exemptions from certain NYSE corporate governance requirements
2. 47We and certain of our stockholders may have conflicts of interest with AIG, Nippon or Blackstone, our largest stockholders
3. 48We and AIG have indemnification obligations to one another
4. 49We are not able to file a single U.S. consolidated federal income tax return for five years following our IPO
5. 50We underwent an “ownership change” for U.S. federal income tax purposes
6. 51We are subject to risks associated with the Tax Matters Agreement and income taxes for years in which we were members of the AIG Consolidated Tax Group
7. 52Anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders
8. 53Pursuant to our amended and restated certificate of incorporation and the stock purchase agreement executed in connection with the Nippon Transaction (the “Purchase Agreement”), we waive any interest or expectancy in corporate opportunities presented to AIG, Blackstone or Nippon, as applicable
9. 54Fulfilling our obligations incident to being a public company, including with respect to the requirements of and related rules under the Sarbanes-Oxley Act of 2002, and the Dodd-Frank Act, is expensive and time-consuming