What the changes say
- New risks emphasize subsidiary dividend restrictions, external financing access, Series A preferred stock, AI oversight, and ESG regulation.
- California climate-disclosure laws could require greenhouse-gas reporting and climate-related financial-risk reporting.
- Removed risks included Fortitude Re exposure, real-estate values, catastrophes, competition, productivity initiatives, and public-company compliance.
- Equity-market risk now specifically highlights potential obligations from annuity contracts with guaranteed living benefits; CAMT disclosure was updated.
What changed since the prior 10-K
New
- NewRisks Relating to Our Investment Portfolio, Liquidity, Capital and Credit
Our decision to pursue strategic changes or transactions in our business and operations may also subject our subsidiaries’ dividend plans to heightened regulatory scrutiny and could make obtaining regulatory approvals for extraordinary distributions by our subsidiaries, if any are sought, more difficult
Strategic changes may trigger greater scrutiny of subsidiary dividends, while external financing could become unavailable or prohibitively expensive.
- NewRisks Relating to Our Investment Portfolio, Liquidity, Capital and Credit
We have outstanding Series A Preferred Stock which may limit our ability to pay dividends
Unpaid Series A preferred dividends could block common-stock dividends, junior-capital distributions, redemptions, and certain guarantee payments.
- NewRisks Relating to Business and Operations
Our processes for the development, testing, use, oversight and ongoing monitoring of our AI use may not be effective, and our use of AI could introduce various risks and biases into our processes. Our competitors may also adopt these tools more efficiently and effectively, exposing us to competitive harm
Weak AI governance or vendor misuse could create bias, legal, operational, and competitive risks, while competitors may use AI more effectively.
- NewRisks Relating to Business and Operations
There is increasing scrutiny and evolving expectations from investors, customers, regulators, and other stakeholders on ESG and sustainability practices and disclosures, including those related to environmental stewardship, climate change, workplace conduct, and other social and political mandates
ESG and climate-disclosure expectations, including California greenhouse-gas and climate-risk reporting laws, could increase costs, restrict opportunities, or create regulatory conflicts.
Dropped
- DroppedRisks Relating to Market Conditions
Equity 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
- DroppedRisks Relating to Market Conditions
We 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
- DroppedRisks Relating to Insurance Risk and Related Exposures
We are exposed to risk from our agreements with Fortitude Re
- DroppedRisks Relating to Business and Operations
We may face increasing scrutiny and evolving expectations from investors, regulators, customers and other stakeholders regarding environmental, social and governance matters
- DroppedRisks Relating to Business and Operations
We face intense competition in each of our business lines and technological changes may present new and intensified challenges to our business
Equity-market declines affecting equity investments, private equity, GLB hedges, and insurance-subsidiary statutory surplus.
- DroppedRisks Relating to Business and Operations
Catastrophes, including those associated with climate change and pandemics, may adversely affect our business and financial condition
Falling real-estate values affecting real-estate equity, mortgages, structured securities, and real-estate investment trusts.
- DroppedRisks Relating to Estimates and Assumptions
Our productivity improvement initiatives may not yield our expected expense reductions and improvements in operational and organizational efficiency
- DroppedRisks Relating to Our Relationships with Key Stockholders
We rely on exemptions from certain NYSE corporate governance requirements
- DroppedRisks Relating to Our Relationships with Key Stockholders
Fulfilling 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
Reworded
- 80% rewrittenRisks Relating to Market Conditions
We are exposed to risk from equity market declines or volatility
The risk now specifically identifies higher potential obligations on annuity contracts with guaranteed living benefits, while omitting prior discussion of variable-annuity sensitivity and liquidity effects.
- 69% rewrittenRisks Relating to Business and Operations
Our reliance on, and third party use of, AI exposes us to risks
The current text retains AI use and governance background but omits the prior discussion of AI-related biases and competitors’ more effective use.
- 64% rewrittenRisks Relating to Insurance Risk and Related Exposures
Further, we face the risk of financial responsibility for risks related to assumed reinsurance, including claims made by the ceding company
The heading now emphasizes financial responsibility for assumed-reinsurance risks and ceding-company claims; the supporting regulatory and reserve-credit discussion is unchanged.
- 52% rewrittenRisks Relating to Business and Operations
We may be unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data
Third-party systems and services are now expressly included, while the prior wording’s references to transmitting, using, and deleting data were revised.
- 49% rewrittenRisks Relating to Regulation
Changes 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
The CAMT discussion now states that IRS and Treasury proposed regulations were issued September 12, 2024, with differing effective dates.
- 45% rewrittenRisks Relating to Our Investment Portfolio, Liquidity, Capital and Credit
Corebridge Parent’s ability to access funds from our subsidiaries is limited
No substantive risk change is apparent; the description of Corebridge Parent’s dependence on subsidiary payments remains materially the same.
- 43% rewrittenRisks Relating to Business and Operations
Third parties we rely upon to provide certain business and administrative services may not perform as anticipated
The risk adds information-security outsourcing, removes cost-efficiency and Aladdin implementation concerns, and says BlackRock’s Aladdin implementation is complete.
- 31% rewrittenRisks Relating to Market Conditions
Our business is highly dependent on economic and capital market conditions
The scope now expressly covers U.S. and global conditions, and identifies Blackstone rather than Blackstone IM among investment managers.
- 27% rewrittenRisks Relating to Market Conditions
We are exposed to credit spread risk primarily as a result of market price volatility and investment risk associated with the fluctuation in credit spreads
- 27% rewrittenRisks Relating to Business and Operations
We 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
- 26% rewrittenRisks Relating to Insurance Risk and Related Exposures
Reinsurance may not be available or economical and may not be adequate to protect us against losses
- 21% rewrittenRisks Relating to Business and Operations
We 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
All 49 risk factors
Headings as the filing states them, in filing order.
Risks Relating to Market Conditions
- 01We are exposed to risk from changes in interest rates
- 02We are exposed to credit spread risk primarily as a result of market price volatility and investment risk associated with the fluctuation in credit spreads27% rewritten
- 03Our business is highly dependent on economic and capital market conditions31% rewritten
- 04We are exposed to risk from equity market declines or volatility80% rewritten
Risks Relating to Insurance Risk and Related Exposures
- 05The amount and timing of insurance liability claims are difficult to predict
- 06Reinsurance may not be available or economical and may not be adequate to protect us against losses26% rewritten
- 07Further, we face the risk of financial responsibility for risks related to assumed reinsurance, including claims made by the ceding company64% rewritten
Risks Relating to Our Investment Portfolio, Liquidity, Capital and Credit
- 08Gross unrealized losses on fixed maturity securities may be realized or result in future impairments
- 09Corebridge Parent’s ability to access funds from our subsidiaries is limited45% rewritten
- 10Our decision to pursue strategic changes or transactions in our business and operations may also subject our subsidiaries’ dividend plans to heightened regulatory scrutiny and could make obtaining regulatory approvals for extraordinary distributions by our subsidiaries, if any are sought, more difficultnew
- 11We have incurred and may incur additional indebtedness
- 12Our 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
- 13We may not be able to generate cash to meet our needs due to the illiquidity of some of our investments
- 14We have outstanding Series A Preferred Stock which may limit our ability to pay dividendsnew
- 15Our valuation of investments and derivatives involves the application of methodologies and assumptions to derive estimates that may differ from actual experience
- 16The IFS ratings of our insurance companies or our credit ratings could be downgraded
- 17We are exposed to risks from our participation in repurchase, securities lending and other collateralized programs
- 18We are exposed to counterparty credit risk
- 19In 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
- 20Pricing for our products is subject to our ability to adequately assess risks and estimate losses
- 21Guarantees within certain of our products may increase the volatility of our results
- 22We are exposed to risks from our use of derivative instruments to hedge market risks associated with our liabilities
- 23We may experience difficulty in marketing and distributing our Individual Retirement and Life Insurance products and the use of third parties may result in additional liabilities21% rewritten
- 24We may experience difficulty in sales and asset retention with respect to our Retirement Services business
- 25Third parties we rely upon to provide certain business and administrative services may not perform as anticipated43% rewritten
- 26We 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 results27% rewritten
- 27We may be unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data52% rewritten
- 28Our reliance on, and third party use of, AI exposes us to risks69% rewritten
- 29Our processes for the development, testing, use, oversight and ongoing monitoring of our AI use may not be effective, and our use of AI could introduce various risks and biases into our processes. Our competitors may also adopt these tools more efficiently and effectively, exposing us to competitive harmnew
- 30There is increasing scrutiny and evolving expectations from investors, customers, regulators, and other stakeholders on ESG and sustainability practices and disclosures, including those related to environmental stewardship, climate change, workplace conduct, and other social and political mandatesnew
- 31Our risk management policies, standards and procedures may prove to be ineffective and leave us exposed to unidentified or unanticipated risk
- 32We may be subject to significant legal, governmental or regulatory proceedings
- 33Business or asset acquisitions and dispositions may expose us to certain risks
- 34We may not be able to protect our intellectual property and may be subject to infringement claims
Risks Relating to Regulation
- 35Our business is heavily regulated
- 36New domestic or international laws and regulations, or new interpretations of current laws and regulations, may affect our ability to operate efficiently or compete effectively
- 37Nippon’s relationship with us may result in us needing to comply with additional regulatory requirements
- 38Changes 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 business49% rewritten
Risks Relating to Estimates and Assumptions
- 39Estimates, assumptions or data used in the preparation of financial statements and certain modeled results may differ materially from actual experience
- 40Our deferred tax assets may not be realized
Risks Relating to Employees
- 41We may not be able to attract and retain the key employees and highly skilled people we need to support our business
- 42Employee error and misconduct may be difficult to detect and prevent and may result in significant losses
Risks Relating to Our Relationships with Key Stockholders
- 43We and certain of our stockholders may have conflicts of interest with AIG, Nippon or Blackstone, our largest stockholders
- 44We and AIG have indemnification obligations to one another
- 45We are not able to file a single U.S. consolidated federal income tax return for five years following our IPO
- 46We underwent an “ownership change” for U.S. federal income tax purposes
- 47We 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
- 48Anti-takeover provisions could discourage, delay, or prevent our change in control, even if the change in control would be beneficial to our shareholders
- 49Pursuant 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
Other Corebridge Financial 10-Ks
- 2025 10-K risk factors
54 risks. Investment exposure dominates, especially fixed-income values, credit spreads, equity markets, real estate and liquidity.
Filed Feb 13, 2025
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.