Corebridge Financial Inc (CRBG) 2023 Q4 法說會逐字稿

Hello, everyone, and welcome to the Corebridge Financial, Inc. Fourth Quarter 2023 Earnings Call. My name is Seb, and I will be the operator for your call today. (Operator Instructions)

大家好，歡迎參加 Corebridge Financial, Inc. 2023 年第四季財報電話會議。我叫 Seb，今天我將擔任您的接線生。 （操作員說明）

I will now hand the floor over to Isil Muderrisoglu to begin the call. Please go ahead.

我現在將發言權交給 Isil Muderrisoglu 開始通話。請繼續。

Good morning, everyone, and welcome to Corebridge Financial earnings update for the fourth quarter and full year of 2023. Joining me on the call are Kevin Hogan, President and Chief Executive Officer; and Elias Habayeb, Chief Financial Officer. We will begin with prepared remarks by Kevin and Elias, and then we will take your questions.

大家早安，歡迎收看 Corebridge Financial 2023 年第四季和全年財報更新。與我一起參加電話會議的有總裁兼執行長 Kevin Hogan；埃利亞斯‧哈巴耶布 (Elias Habayeb)，財務長。我們將從凱文和埃利亞斯準備好的演講開始，然後我們將回答你們的問題。

Today's comments may contain forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based upon management's current expectations and assumptions. Corebridge's filings with the SEC provide details on important factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Except as required by the applicable securities law, Corebridge is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change, and you are cautioned to not place undue reliance on any forward-looking statements.

今天的評論可能包含前瞻性陳述，這些陳述存在風險和不確定性。這些陳述不是對未來績效或事件的保證，而是基於管理層目前的預期和假設。 Corebridge 向 SEC 提交的文件提供了可能導致實際結果或事件與此類前瞻性陳述明示或暗示的結果或事件存在重大差異的重要因素的詳細資訊。除適用證券法要求外，如果情況或管理層的估計或意見發生變化，Corebridge 沒有義務更新任何前瞻性陳述，並提醒您不要過度依賴任何前瞻性陳述。

Additionally, today's remarks may refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is included in our earnings release, financial supplement and earnings presentation, all of which are available on our website at investor.corebridgefinancial.com.

此外，今天的言論可能涉及非公認會計準則財務指標。這些指標與最具可比性的 GAAP 數據的調節包含在我們的收益發布、財務補充和收益演示中，所有這些都可以在我們的網站 Investor.corebridgefinancial.com 上找到。

With that, I would like to now turn the call over to Kevin and Elias for their prepared remarks. Kevin?

現在，我想將電話轉給凱文和埃利亞斯，讓他們聽聽他們準備好的發言。凱文？

Thank you, Isil, and good morning. 2023 was built an important year for Corebridge and a successful one. We executed with focus and determination, capitalized on attractive market opportunities, made tremendous progress on our strategic and operational priorities. And in each and every quarter, we delivered quality financial results. This morning, I will review the first full calendar year for Corebridge through 5 different lenses: profitability, sales, sources of income, operating expenses and capital return. Elias will then provide details on our fourth quarter results and offer some guidance for the year ahead.

謝謝你，伊西爾，早安。 2023 年對 Corebridge 來說是重要的一年，也是成功的一年。我們專注而堅定地執行任務，利用有吸引力的市場機會，在我們的策略和營運重點方面取得了巨大進展。在每個季度，我們都交付了優質的財務表現。今天早上，我將透過 5 個不同的視角回顧 Corebridge 的第一個完整日曆年：獲利能力、銷售額、收入來源、營運費用和資本回報。然後，埃利亞斯將提供有關我們第四季度業績的詳細信息，並為未來一年提供一些指導。

But first, I want to remind you of the value proposition we laid out at our IPO. Corebridge operates 4 market-leading businesses that provide a broad set of protection and retirement solutions to individuals and institutions. We manufacture a wide range of products that appeal to different market segments while also designed to generate attractive returns. We have a high-quality in-force portfolio and have managed it carefully. The diversity in our product suite and the breadth of our distribution strategy allow us to be nimble and react to evolving market conditions. We have the ability to dial up and dial down product sales based on changes in customer demand and where risk-adjusted returns are the most attractive, as evidenced by our recent emphasis on spread-based products, such as fixed annuities, which has grown over 200% since 2020 and, pension risk transfer, which has grown 130% over the same period.

但首先，我想提醒您我們在 IPO 中提出的價值主張。 Corebridge 經營 4 項市場領先的業務，為個人和機構提供廣泛的保障和退休解決方案。我們生產各種產品，吸引不同的細分市場，同時也旨在產生可觀的回報。我們擁有高品質的有效投資組合，並對其進行了精心管理。我們產品套件的多樣性和分銷策略的廣度使我們能夠靈活應對不斷變化的市場狀況。我們有能力根據客戶需求的變化以及風險調整後的回報最具吸引力的情況來提高和降低產品銷售量，正如我們最近對基於利差的產品的重視所證明的那樣，例如固定年金，該產品的成長超過了自 2020 年以來成長了 200%，退休金風險轉移同期成長了 130%。

Our leading distribution platform is also a significant contributor to our agility, with over 1,200 distribution relationships with banks, broker-dealers, wirehouses, independent marketing organizations and general and independent agencies as well as our own financial adviser and our direct channel. We continue to invest in our platforms to improve efficiency, scalability and productivity such as we have been undertaking with Corebridge Forward our modernization program.

我們領先的分銷平台也是我們敏捷性的重要貢獻者，與銀行、經紀交易商、電線公司、獨立行銷組織、一般和獨立機構以及我們自己的財務顧問和直接管道建立了 1,200 多個分銷關係。我們繼續投資我們的平台，以提高效率、可擴展性和生產力，就像我們與 Corebridge Forward 一起實施的現代化計劃一樣。

Our competitiveness is further supported by our asset origination capabilities that have been enhanced by our investment partnerships with Blackstone and BlackRock. Our strategy is to grow our company in a way that creates value for both our customers and our shareholders. Collectively, our diversified businesses and dynamic business model have a long track record of delivering attractive financial results and consistent cash flows under different macro environments. Together with our strong balance sheet, we are well positioned to deliver long-term value to our shareholders by remaining focused on improving profitability and returning a meaningful amount of capital. With that as background, I would like to review our 2023 financial results.

我們的資產發起能力進一步支持了我們的競爭力，而我們與 Blackstone 和 BlackRock 的投資夥伴關係也增強了我們的資產發起能力。我們的策略是以為客戶和股東創造價值的方式發展我們的公司。總的來說，我們的多元化業務和充滿活力的商業模式擁有在不同宏觀環境下提供有吸引力的財務表現和穩定現金流的長期記錄。加上我們強大的資產負債表，我們有能力繼續專注於提高獲利能力和返還大量資本，為股東創造長期價值。以此為背景，我想回顧我們 2023 年的財務表現。

Corebridge is pleased to report very strong results not only for the fourth quarter but also for the full year. We grew 2023 adjusted after-tax operating income to $2.6 billion, a 12% increase year-over-year. Our full year non-GAAP operating earnings per share also rose by 12% to $4.10, and our 2023 adjusted return on average equity increased on a run rate basis to 12.2%, an improvement of over 200 basis points from the prior year. Corebridge drove profitability through strong top line growth, margin expansion and expense efficiency. We benefited from the investments we have made in our operating model, which positioned us to capitalize on historic market opportunities.

Corebridge 很高興地報告第四季度和全年的強勁業績。我們將 2023 年調整後稅後營業收入增至 26 億美元，年增 12%。我們全年的非 GAAP 每股營運收益也成長了 12%，達到 4.10 美元，以運行率計算，我們 2023 年調整後的平均股本回報率增長到 12.2%，比上一年提高了 200 個基點。 Corebridge 透過強勁的營收成長、利潤擴張和費用效率提高了獲利能力。我們受益於我們對營運模式的投資，這使我們能夠利用歷史性的市場機會。

In 2023, we grew premiums and deposits across our broad portfolio of spread-based products by 60%. These products are particularly attractive now, producing strong margins with double-digit IRRs. Looking across the entire Corebridge portfolio, premiums and deposits were $10.5 billion for the fourth quarter and $39.9 billion for the year. The full year volume of almost $40 billion is a new record for us and one of several high watermarks for 2023, including fixed annuities, fixed index annuities, guaranteed investment contracts and pension risk transfer sales.

2023 年，我們廣泛的利差產品組合的保費和存款增加了 60%。這些產品現在特別有吸引力，產生了兩位數內部報酬率的強勁利潤。縱觀整個 Corebridge 投資組合，第四季的保費和存款為 105 億美元，全年為 399 億美元。全年交易量近 400 億美元，創下了我們的新紀錄，也是 2023 年的幾個高水位線之一，其中包括固定年金、固定指數年金、擔保投資合約和退休金風險轉移銷售。

Complementing this growth, we leveraged our unique investment platform to scale the origination of attractive assets that are well matched to our liabilities and to opportunistically lock in favorable yields from which we expect to see benefits for years to come. Our new operating model enabled us to rapidly expand capacity to support record sales volumes, especially in the latter part of the year. We also grew our aggregate core sources of income, which increased 12% for the full year to $7.1 billion. Our 4 established businesses generate an attractive mix of spread income, fee income and underwriting margin. We enjoyed meaningful growth of spread income supported by market conditions, while at the same time, fee income stabilized with improved asset valuations and the expansion of our advisory and brokerage business and Group Retirement. And we continue to generate a solid underwriting margin from improved full year mortality experience.

為了補充這種成長，我們利用我們獨特的投資平台來擴大與我們的負債相符的有吸引力的資產的來源，並機會主義地鎖定有利的收益率，我們預計將在未來幾年從中看到收益。我們的新營運模式使我們能夠迅速擴大產能，以支持創紀錄的銷量，特別是在今年下半年。我們的核心收入來源總額也有所成長，全年成長 12%，達到 71 億美元。我們的 4 項成熟業務在價差收入、費用收入和承保利潤方面產生了有吸引力的組合。在市場狀況的支持下，我們的利差收入實現了顯著增長，同時，隨著資產估值的改善以及我們的諮詢和經紀業務以及集團退休業務的擴展，費用收入也趨於穩定。我們繼續透過改善全年死亡率經驗來產生穩固的承保利潤。

Taking a look at our spread businesses, we increased full year base spread income by nearly $900 million or 30% to $3.7 billion. We were able to serve our customers and distribution partners' needs with attractive products reflecting some of the most supportive market conditions in recent memory. With interest rates at levels not seen in over a decade, we seized the opportunity. As we look ahead to 2024, the environment remains attractive for new business, and we remain well positioned to serve our markets.

看看我們的利差業務，我們全年基本利差收入增加了近 9 億美元，即 30%，達到 37 億美元。我們能夠透過有吸引力的產品來滿足客戶和分銷合作夥伴的需求，這些產品反映了近期記憶中一些最有利的市場條件。由於利率處於十多年來未見的水平，我們抓住了這個機會。展望 2024 年，環境對新業務仍然具有吸引力，我們仍然處於服務市場的有利地位。

Although we invested as appropriate to increase our capacity in both sales and operations to support this unique growth opportunity, we also remain steadfastly focused on expenses. Between the fourth quarter of 2022 and the fourth quarter of 2023, we reduced our operating expenses by 14%. A key contributor has been Corebridge Forward. We have achieved or contracted on 88% of our exit run rate savings goal of $400 million, and we expect the vast majority to earn into our results by the end of 2024. This program is near its completion as we transition to a focus on continuous improvement.

儘管我們進行了適當的投資，以提高我們的銷售和營運能力，以支持這一獨特的成長機會，但我們仍然堅定地專注於支出。 2022年第四季至2023年第四季期間，我們的營運費用減少了14%。 Corebridge Forward 是關鍵貢獻者。我們已經實現或簽署了 4 億美元的退出運行率節省目標的 88%，我們預計絕大多數將在 2024 年底之前轉化為我們的業績。隨著我們過渡到專注於持續性，該計劃即將完成。改進。

Turning to capital management. We have been clear since the outside of Corebridge that we are committed to deploying capital to create value for shareholders. In 2023, we demonstrated our ability to do this, with strong cash flows from our insurance companies, supported by important strategic transactions. We closed the sale of Laya Healthcare in Ireland and remain on track to close the sale of our U.K. life business in the second quarter of 2024 as we streamline our portfolio with a continuing focus on life and retirement solutions in the United States. Collectively, the sale of our international life operations will generate over $1 billion of value.

轉向資本管理。自 Corebridge 外部以來，我們一直明確表示，我們致力於部署資本，為股東創造價值。 2023 年，我們在重要策略交易的支持下，憑藉來自保險公司的強勁現金流，證明了我們有能力做到這一點。我們完成了愛爾蘭 Laya Healthcare 的出售，並預計在 2024 年第二季度完成英國人壽業務的出售，同時我們將繼續關注美國的人壽和退休解決方案來精簡我們的投資組合。總的來說，出售我們的國際人壽業務將產生超過 10 億美元的價值。

Corebridge returned over $2.2 billion to shareholders in our first full calendar year as a public company, including special dividends, and we remain committed to delivering a 60% to 65% payout ratio in 2024. Our delivery of these attractive levels of shareholder return reflects the confidence we have in our financial position. We entered 2024 with a strong balance sheet and ample levels of liquidity and capital, representing enhanced financial flexibility. For over a decade and across various economic cycles, we have consistently maintained a Life Fleet RBC ratio above our target. At the same time, our insurance companies have distributed over $2 billion annually to our holding company. We are routinely able to maintain healthy capital levels regardless of the macro environment while simultaneously supporting new business volume and robust capital return.

Corebridge 在作為上市公司的第一個完整日曆年向股東回報超過22 億美元，包括特別股息，我們仍然致力於在2024 年實現60% 至65% 的派息率。我們提供這些有吸引力的股東回報水準反映了我們對自己的財務狀況充滿信心。進入 2024 年，我們的資產負債表強勁，流動性和資本充足，財務彈性增強。十多年來，在不同的經濟週期中，我們始終將生命艦隊 RBC 比率維持在高於我們目標的水平。同時，我們的保險公司每年向我們的控股公司分配超過 20 億美元。無論宏觀環境如何，我們通常都能維持健康的資本水平，同時支持新業務量和強勁的資本回報。

Finally, I want to turn to the operational separation from AIG. This has been a complex program demanding considerable expertise and coordination, and we are nearing the end of our work. We established the capabilities required of a stand-alone public company, implemented our own capital structure, created and brought to life a new brand and disentangled functions, systems and infrastructure.

最後，我想談談與 AIG 的營運分離。這是一個複雜的計劃，需要大量的專業知識和協調，我們的工作即將結束。我們建立了獨立上市公司所需的能力，實施了自己的資本結構，創建並賦予了新品牌並理清了職能、系統和基礎設施。

On the IT side, just as one example, we migrated nearly 700 physical applications, hundreds of operating platforms and thousands of end users. These efforts did not distract us from continuing to serve our customers and distribution partners. At the end of 2023, our total spend on operational separation was $425 million. As we said before, some work has indeed extended into 2024, along with a handful of transition services agreements. All of this required an extraordinary effort. For our employees, you have my gratitude. We ask a lot of all of you, and you delivered. I also want to thank our partners and AIG for helping to make our operational separation of success.

在IT方面，舉個例子，我們遷移了近700個實體應用程式、數百個操作平台和數千個最終用戶。這些努力並沒有分散我們繼續為客戶和分銷合作夥伴提供服務的注意力。截至 2023 年底，我們在營運分離方面的總支出為 4.25 億美元。正如我們之前所說，有些工作確實已經延長到 2024 年，同時也簽署了一些過渡服務協議。所有這一切都需要付出非凡的努力。對於我們的員工，我深表感謝。我們向你們提出了很多要求，你們也做到了。我還要感謝我們的合作夥伴和 AIG 幫助我們實現業務分離的成功。

Returning to where I began my remarks, 2023 was our first full calendar year as a public company, and it was a very productive one. The fourth quarter was a strong conclusion to what was a very good year.

回到我開始發言的地方，2023 年是我們作為上市公司的第一個完整日曆年，也是非常有成效的一年。第四季是非常好的一年的有力總結。

I will now turn the call over to Elias who will go into more detail on the results for the quarter.

我現在將把電話轉給埃利亞斯，他將詳細介紹本季的業績。

Thank you, Kevin. Corebridge delivered excellent results, both in the fourth quarter as well as the full year of 2023 while improving our financial position. We executed across strategic and operational priorities and made significant progress on the financial goals we established at the time of the IPO. Corebridge increased profitability by capitalizing on market opportunities while reducing our operating expenses. We strengthened our core businesses and enhanced our financial flexibility while returning significant capital to shareholders.

謝謝你，凱文。 Corebridge 在第四季度和 2023 年全年均取得了出色的業績，同時改善了我們的財務狀況。我們執行了策略和營運優先事項，並在 IPO 時制定的財務目標方面取得了重大進展。 Corebridge 透過利用市場機會提高獲利能力，同時降低營運費用。我們加強了核心業務，增強了財務彈性，同時向股東返還了大量資本。

Corebridge reported fourth quarter adjusted pretax operating income of $820 million or earnings per share of $1.04, an increase of 12% year-over-year on a per share basis. Operating EPS included a $0.06 impact from nonrecurring items in our investment portfolio related to a prior period true-up on certain investments. This was offset by a $0.17 impact from alternative investment returns below our long-term expectations. Adjusting for these 2 items, our operating EPS would have been $1.15. This is a 25% improvement year-over-year on a comparative basis.

Corebridge 公佈第四季度調整後稅前營業收入為 8.2 億美元，每股收益為 1.04 美元，每股收益較去年同期成長 12%。營運每股盈餘包括我們投資組合中與前期某些投資調整相關的非經常性項目產生的 0.06 美元的影響。這被另類投資回報低於我們長期預期的 0.17 美元影響所抵消。對這兩項進行調整後，我們的營運每股收益將為 1.15 美元。與去年同期相比，這一數字提高了 25%。

Our aggregate core sources of income, which excludes variable investment income, improved year-over-year driven by growth in base spread income and in fee income, partially offset by a reduction in underwriting margin. The increase in base spread income, our largest source of earnings, was driven by higher new money yields and growth of our broad portfolio of spread-based products. On average, new money yields were 7% in the fourth quarter or 190 basis points above yields on assets that matured or were sold in our general accounts. Total invested assets grew by approximately $11 billion.

我們的核心總收入來源（不包括可變投資收入）在基本利差收入和費用收入增長的推動下同比有所改善，但部分被承保利潤率的下降所抵消。基礎利差收入是我們最大的收入來源，其成長是由更高的新貨幣收益率和我們廣泛的利差產品組合的成長所推動的。平均而言，第四季度新貨幣收益率為 7%，比到期或在我們普通帳戶中出售的資產收益率高出 190 個基點。總投資資產成長約 110 億美元。

The increase in fee income, our second largest source of earnings, reflected the improvements in underlying asset valuations and the expansion of advisory and brokerage services in our Group Retirement segment. The decline in underwriting margin was the result of a higher frequency of smaller claims in our universal life book this quarter and net favorable nonrecurring items impacting our Life Insurance segment in the prior year quarter.

費用收入是我們的第二大收入來源，其成長反映了基礎資產估值的改善以及集團退休業務諮詢和經紀服務的擴展。承保利潤率下降的原因是本季我們的萬能壽險帳簿中小額索賠的頻率較高，以及淨有利的非經常性項目影響了我們上一季的人壽保險部門。

Pivoting to net investment income. Net investment income for our insurance companies on an APTOI basis improved 16% year-over-year. Base portfolio income grew 17% over the prior year quarter to nearly $2.6 billion. Reported base yields increased 45 basis points year-over-year to 4.87%. Excluding the impact from the aforementioned nonrecurring items, base yields increased 51 basis points over the prior year quarter.

轉向投資淨收益。以 APTOI 計算，我們保險公司的淨投資收入年增 16%。基本投資組合營收比去年同期成長 17%，達到近 26 億美元。報告的基本收益率年增 45 個基點至 4.87%。剔除上述非經常性項目的影響，基本收益率較上年同期成長 51 個基點。

Based on our current interest rate and net flows outlook for 2024, we expect base portfolio income, along with associated base yield, will continue to grow, albeit at a slower pace. Corebridge improved base yield this quarter while also moving up in credit quality. Our general account investment portfolio is well positioned to perform under various market conditions. It is diversified, actively managed and remains high quality, with an average credit rating of A flat. 95% of fixed maturities were rated in investment grade as of December 31. The credit metrics in our Corebridge fixed income portfolio remained strong, and for the full year, the portfolio experienced net positive rating migrations, with upgrades outpacing downgrades. The credit fundamentals in our commercial mortgage loan portfolio remained resilient and are evolving as expected.

根據我們目前的利率和 2024 年淨流量展望，我們預期基本投資組合收入以及相關的基本收益率將繼續成長，儘管成長較慢。 Corebridge 本季提高了基本收益率，同時信貸品質也有所提高。我們的普通帳戶投資組合能夠在各種市場條件下表現良好。該公司業務多元化，管理積極，保持高品質，平均信用評級為A級。截至12 月31 日，95% 的固定期限債券被評為投資等級。我們的Corebridge 固定收益投資組合的信用指標依然強勁，全年該投資組合經歷了淨正評級遷移，評級升級的速度超過了評級下調的速度。我們的商業抵押貸款組合的信貸基本面仍然具有彈性，並且正在按預期發展。

LTV and debt service coverage ratios remain strong. Less than 1.5% of our loans have an LTV greater than 80% with a debt service coverage ratio below 1x. Our team is now focused on resolving 2024 maturities, of which office maturities are only $240 million or approximately 3% of the office portfolio. Corebridge remains proactive in reserving for potential losses in the portfolio and continues to maintain a robust loan loss allowance, which is reassessed on a quarterly basis.

LTV 和償債覆蓋率仍然強勁。在我們的貸款中，只有不到 1.5% 的貸款貸款價值高於 80%，償債覆蓋率低於 1 倍。我們的團隊現在專注於解決 2024 年到期的問題，其中辦公室到期金額僅為 2.4 億美元，約佔辦公室投資組合的 3%。 Corebridge 仍然積極主動地為投資組合中的潛在損失做好準備，並繼續維持穩健的貸款損失準備金，並每季重新評估一次。

As of December 31, our allowance is equal to 1.8% of the total CML book, unchanged from the prior quarter. We also continue to hold an allowance in excess of 5% for our traditional office portfolio. We continue to believe our exposure to the office sector is manageable and remain convinced that the dislocation in this sector will play out over time.

截至 12 月 31 日，我們的津貼相當於 CML 帳面總額的 1.8%，與上一季持平。我們也繼續為傳統辦公大樓投資組合保留超過 5% 的準備金。我們仍然相信我們對辦公行業的曝險是可控的，並且仍然相信該行業的混亂將隨著時間的推移而逐漸顯現。

Now moving to variable investment income. Alternative investments, which represent only 3% of our total invested assets or $5.5 billion, delivered a $23 million loss in the quarter. Positive returns in traditional private equity were offset by losses in real estate equity and hedge funds. During 2023, we reduced our hedge fund holdings by over 70%, ending the year with a portfolio of approximately $200 million. Alternative investments continue to be an important asset class as part of our strategic asset allocation. Over the last 5 years, these investments have returned an average of 14%, and we continue to have a long-term performance expectation of 8% to 9% for the asset class.

現在轉向可變投資收益。另類投資僅占我們總投資資產（55 億美元）的 3%，本季虧損 2,300 萬美元。傳統私募股權的正回報被房地產股權和對沖基金的損失所抵消。 2023 年，我們對沖基金持股減少了 70% 以上，年底投資組合規模約 2 億美元。另類投資仍然是我們策略資產配置的重要資產類別。過去 5 年，這些投資的平均回報率為 14%，我們繼續對該資產類別的長期業績預期為 8% 至 9%。

Given the increases in cap rates during the fourth quarter, we are expecting further mark-to-market losses on our real estate equity investments in the first quarter of 2024. Real estate equity constitutes approximately 25% of our alternative investments or less than 1% of our total invested assets. Despite these valuation impacts, the portfolio continues to perform well with strong cash flows at the property level.

鑑於第四季度資本化率的上升，我們預計 2024 年第一季我們的房地產股權投資將進一步出現按市值計價的虧損。房地產股權約占我們另類投資的 25% 或不到 1%我們的總投資資產。儘管存在這些估值影響，但該投資組合繼續表現良好，房地產層面的現金流強勁。

Pivoting to the business segments, which continued their strong performance during the fourth quarter. Individual Retirement reported adjusted pretax operating income of $628 million, a 35% increase year-over-year, primarily driven by higher base spread income resulting from general account product growth and base spread expansion. Over the last 12 months, this business has contributed approximately 60% Corebridge's insurance segment operating results. The compelling value proposition of our fixed and fixed index annuities has been responsible for approximately 51% of our earnings. Variable annuities have contributed only 9% to our adjusted pretax operating income.

轉向業務板塊，第四季持續保持強勁表現。個人退休報告調整後稅前營業收入為 6.28 億美元，年增 35%，主要是由於普通帳戶產品增長和基礎利差擴大帶來基礎利差收入增加。過去 12 個月，該業務貢獻了 Corebridge 保險部門約 60% 的營運表現。我們的固定和固定指數年金引人注目的價值主張為我們帶來了約 51% 的收入。可變年金僅占我們調整後稅前營業收入的 9%。

Base net investment spread for Individual Retirement rose 37 basis points from the prior year quarter and 4 basis points sequentially. We expect base spread income will continue to grow over the coming year. However, base net investment spread expansion likely has peaked. That being said, base spreads on the overall portfolio remain at very attractive levels.

個人退休金的基本淨投資利差較上年同期上升 37 個基點，較上一季上升 4 個基點。我們預計來年基本利差收入將持續成長。然而，基數淨投資利差擴張可能已見頂。話雖如此，整體投資組合的基礎利差仍保持在非常有吸引力的水平。

The operational capacity expansion we discussed during last quarter's earnings call allowed us to deliver over $3 billion of fixed annuity sales during the third -- during the last 3 months of the year. This along with persistently strong fixed index annuity sales helped Individual Retirement delivered positive general account net flows of roughly $1.7 billion. Our fourth quarter fixed annuity surrender rate declined 80 basis points sequentially. While we expect surrender rates largely to track changes in interest rates, periodically, we may see movements in the surrender rate as blocks of business exit their surrender charge protection. For instance, in the first quarter of 2024 we expect a higher volume of annuities exiting the surrender charge protection, which should result in an elevated surrender rate. That being said, we continue to project general account net flows will remain positive.

我們在上季財報電話會議上討論的營運能力擴張使我們能夠在第三季（即今年最後三個月）實現超過 30 億美元的固定年金銷售額。再加上持續強勁的固定指數年金銷售，幫助個人退休部門實現了約 17 億美元的正向普通帳戶淨流量。我們第四季的固定年金退保率季減了 80 個基點。雖然我們預期退保率在很大程度上會追蹤利率的變化，但隨著大量業務退出退保費保護，我們可能會定期看到退保率發生變化。例如，我們預計 2024 年第一季退出退保費用保障的年金數量將會增加，這將導致退保率上升。話雖如此，我們仍然預期一般淨帳戶流量將保持正值。

Group Retirement reported adjusted pretax operating income of $179 million, a 4% increase year-over-year. This includes higher fee income and lower expenses, partially offset by lower base spread income. Over the last 12 months, the business has contributed approximately 20% to Corebridge's insurance segment operating results. Group Retirement is a consistent performer. Excluding variable investment income, it has steadily delivered an average of $179 million (sic) [$170 million] of earnings per quarter over the last 16 quarters. Importantly, it is less capital-intensive than our other businesses, with an even split between spread and fee income.

Group Retirement 報告調整後稅前營業收入為 1.79 億美元，年增 4%。這包括較高的費用收入和較低的支出，部分被較低的基本利差收入所抵消。在過去 12 個月中，該業務為 Corebridge 保險部門的營運績效貢獻了約 20%。 Group Retirement 的表現始終如一。不包括可變投資收入，在過去 16 個季度中，該公司穩定地實現了平均每季 1.79 億美元（原文如此）[1.7 億美元]的收益。重要的是，與我們的其他業務相比，它的資本密集度較低，利差和費用收入之間的比例均勻。

As with others in the industry and broader demographic trends in the country, our net outflows are typically driven by customers at or near retirement and transitioning from asset accumulation to asset distribution. These older-age cohorts tend to have higher guaranteed minimum interest rates and larger account values. Concurrently, our net inflows are dominated by our younger-age cohorts with lower guaranteed minimum interest rates. Additionally, we're seeing inflows from auto plan fixed and fixed index annuity sales and our broader offering of advisory and brokerage services, which collectively grew in excess of 40% year-over-year.

與該行業的其他公司以及該國更廣泛的人口趨勢一樣，我們的淨流出通常是由處於或接近退休狀態的客戶以及從資產累積過渡到資產分配的驅動。這些老年族群往往擁有更高的保證最低利率和更大的帳戶價值。同時，我們的淨流入主要由保證最低利率較低的年輕族群主導。此外，我們還看到汽車計劃固定和固定指數年金銷售以及更廣泛的諮詢和經紀服務的資金流入，這些資金的同比增長總計超過 40%。

Finally, I would remind you that there is seasonality in our net flows resulting from required minimum distributions by plan participants. We typically see raised levels of outflows at the end of the year, which we saw again in the fourth quarter. The impact was approximately $400 million.

最後，我想提醒您，由於計劃參與者要求的最低分配，我們的淨流量存在季節性。我們通常會在年底看到資金流出水準上升，第四季再次出現這種情況。影響約 4 億美元。

Life Insurance reported adjusted pretax operating income of $79 million, a 44% decrease year-over-year, mainly driven by mortality experience in our universal life book this quarter and $22 million of net favorable nonrecurring items from the fourth quarter of 2022. Our traditional mortality experience, which is primarily comprised of [term], was favorable this quarter, and overall mortality experience for the full year, inclusive of reserve impact, was consistent with our expectations.

人壽保險公佈的調整後稅前營業收入為7,900 萬美元，年減44%，這主要是由於本季度萬能壽險帳簿中的死亡經歷以及自2022 年第四季開始的2,200 萬美元的淨優惠非經常性項目所致。主要由[術語]組成的死亡率經驗在本季度是有利的，全年的總體死亡率經驗（包括準備金影響）與我們的預期一致。

As a reminder, our sale of Laya Healthcare closed on October 31. So results from this business were only included in our financials for 1 month of the fourth quarter. As we have demonstrated, we're always looking for ways to optimize our portfolio, both in-force and new business. We will continue to regularly review opportunities to increase shareholder value.

提醒一下，我們對 Laya Healthcare 的出售已於 10 月 31 日結束。因此，該業務的業績僅包含在我們第四季度 1 個月的財務數據中。正如我們所證明的，我們一直在尋找優化我們的投資組合的方法，包括現有業務和新業務。我們將繼續定期審查增加股東價值的機會。

Institutional Markets reported adjusted pretax operating income of $93 million, a 55% increase year-over-year, primarily driven by higher base spread income. Our reserves have grown $8 billion or 26% year-over-year, with the expansion of our PRT and GIC businesses. Looking forward, we continue to expect meaningful opportunities to further expand both businesses at attractive margins, which should lead to ongoing growth of base spread income and distributable cash flows.

機構市場報告調整後稅前營業收入為 9,300 萬美元，年增 55%，主要是由於基礎利差收入較高。隨著 PRT 和 GIC 業務的擴展，我們的儲備金年增 80 億美元，成長 26%。展望未來，我們繼續期待有意義的機會以有吸引力的利潤率進一步擴大這兩項業務，這將導致基本利差收入和可分配現金流的持續成長。

Corporate & Other reported an adjusted pretax operating loss of $159 million, primarily the result of our stand-alone capital structure and new parent company expenses since the IPO.

Corporate & Other 報告調整後稅前營運虧損為 1.59 億美元，主要是由於我們的獨立資本結構和 IPO 以來新母公司的支出。

Wrapping up, Corebridge continues to maintain strong capital and liquidity positions. We ended the year with $1.6 billion of holding company liquidity exceeding our next 12-month needs. In the fourth quarter, Corebridge delivered a run rate payout ratio of 60%, excluding special dividends. We returned $1.1 billion to shareholders, comprised of $250 million of share repurchases, approximately $145 million of regular quarterly dividends, and a $730 million special dividend that distributed the proceeds from our sale of Laya Healthcare.

總而言之，Corebridge 繼續保持強勁的資本和流動性狀況。年底，我們的控股公司流動性達到 16 億美元，超出了未來 12 個月的需求。第四季度，Corebridge 的運行率支付率為 60%（不包括特別股息）。我們向股東返還了 11 億美元，其中包括 2.5 億美元的股票回購、約 1.45 億美元的定期季度股息以及用於分配出售 Laya Healthcare 收益的 7.3 億美元的特別股息。

We estimate our Life Fleet RBC ratio to be in the range of 400% (sic) [420%] to 430% as of the end of the year. This was after distributing $2 billion from our insurance companies, which translates into approximately 50 RBC points. Corebridge is starting 2024 in a strong position with enhanced financial flexibility, and we believe we're on track to deliver on our goals, including a payout ratio of 60% to 65%. Consistent with our approach of creating value and enhancing financial flexibility, we're working to have our Bermuda entity support further business development activities. This will provide Corebridge with an additional capacity to grow while optimizing our capital. We're working through the necessary regulatory approvals, which we expect to complete in 2024. In conclusion, 2023 was a very successful year for Corebridge, with the fourth quarter an excellent capstone. We've made tremendous progress, and we remain focused on delivering on our financial goals in 2024.

我們估計，截至今年年底，我們的 Life Fleet RBC 比率將在 400%（原文如此）[420%] 至 430% 之間。這是從我們的保險公司分配了 20 億美元之後的結果，相當於大約 50 個 RBC 積分。 Corebridge 在 2024 年開始將處於有利地位，財務靈活性增強，我們相信我們有望實現我們的目標，包括 60% 至 65% 的派息率。根據我們創造價值和增強財務靈活性的方法，我們正在努力讓我們的百慕達實體支持進一步的業務發展活動。這將為 Corebridge 提供額外的成長能力，同時優化我們的資本。我們正在努力獲得必要的監管批准，預計將於 2024 年完成。總之，2023 年對於 Corebridge 來說是非常成功的一年，第四季度是一個出色的頂峰。我們已經取得了巨大進步，我們仍然專注於實現 2024 年的財務目標。

I will now turn the call back to Isil.

我現在將把電話轉回伊西爾。

Thanks, Elias. As a reminder, please limit yourself to one question and one follow-up. Operator, we are ready to begin the Q&A portion of our call.

謝謝，埃利亞斯。提醒一下，請限制自己提出一個問題和一個後續行動。接線員，我們已準備好開始通話的問答部分。

(Operator Instructions) Our first question comes from Ryan Krueger from KBW.

（操作員說明）我們的第一個問題來自 KBW 的 Ryan Krueger。

My first question was on the Bermuda comment you just made. Just curious, do you view Bermuda as more of an opportunity to improve capital efficiency on new business? Or do you -- in addition to that, do you also see an opportunity to improve the capital efficiency of the existing in-force?

我的第一個問題是關於你剛才發表的百慕達評論。只是好奇，您是否認為百慕達更像是提高新業務資本效率的機會？或者除此之外，您是否也看到了提高現有員工資本效率的機會？

Yes. Thanks, Ryan. As we understand our opportunity, our obligation is to constantly review the portfolio and look for opportunities to create value. And I think we've had a history of execution there, including in Bermuda. We're very familiar with the Bermuda environment. We have a well-capitalized legal entity in Bermuda. And per Elias' comments, we're working now on enhancing its position. We do see various opportunities in Bermuda, obviously, supporting new growth, which is what we're focused on at this point. But it does create opportunities for enhancing capital efficiencies. And we'll continue to review opportunities of an affiliated reinsurer of our own in Bermuda as well as other potential alternative solutions and continue to understand what the market conditions are and where there may be value generation opportunities.

是的。謝謝，瑞安。當我們了解我們的機會時，我們的義務是不斷審查投資組合併尋找創造價值的機會。我認為我們在那裡有執行死刑的歷史，包括在百慕達。我們對百慕達的環境非常熟悉。我們在百慕達擁有資本充足的法人實體。根據 Elias 的評論，我們現在正在努力增強其地位。顯然，我們確實在百慕達看到了各種支持新成長的機會，這正是我們目前關注的重點。但它確實為提高資本效率創造了機會。我們將繼續審查我們在百慕達的附屬再保險公司的機會以及其他潛在的替代解決方案，並繼續了解市場狀況以及哪裡可能存在價值創造機會。

We don't have anything else to report at this time. But we're focused on enhancing the capabilities of our Bermuda entity.

目前我們沒有其他要報告的內容。但我們專注於增強百慕達實體的能力。

Got it. And then a follow-up was on interest rate sensitivity. I know you've given overall interest rate sensitivity in the past. I was hoping you could give us a little bit more color on isolating your sensitivity to short-term rates, specifically -- and if you've taken any actions or plan to take any actions to reduce the floating rate sensitivity if rates start to decline.

知道了。接下來是利率敏感度。我知道您過去曾給出過整體利率敏感度。我希望您能給我們更多的資訊來區分您對短期利率的敏感性，特別是，如果利率開始下降，您是否已採取或計劃採取任何行動來降低浮動利率敏感性。

Ryan, it's Elias. So on the interest rate sensitivity in the past, we have given the sensitivity to a 100 basis point change across the curve, and that was like $165 million in the first 12 months. If you look at the portfolio, the portfolio since then has grown, so that's a little higher, but not that materially different.

瑞安，我是埃利亞斯。因此，在過去的利率敏感性方面，我們給出了曲線上 100 個基點變化的敏感性，前 12 個月約為 1.65 億美元。如果你看一下投資組合，你會發現自那時以來，投資組合一直在成長，所以這個數字有點高，但並沒有太大的不同。

With respect to actions around the portfolio, listen, we -- our investment strategy follows our kind of liability profile. We do have some floating rate liabilities like in Institutional Markets, which are backed with floating rate assets. But on top of it, we're very disciplined from an ALM perspective. And we try to match interest rate duration very tightly. And we will react as that profile changes. We're pretty disciplined on that front.

關於圍繞投資組合的行動，聽著，我們的投資策略遵循我們的負債狀況。我們確實有一些浮動利率負債，例如機構市場，它們由浮動利率資產支持。但最重要的是，從 ALM 的角度來看，我們非常自律。我們嘗試非常緊密地匹配利率期限。我們會隨著設定檔的變化而做出反應。我們在這方面非常有紀律。

Our next question is from Josh Shanker of Bank of America.

我們的下一個問題來自美國銀行的喬許·尚克。

Obviously, a very big quarter for fixed annuity sales. I wonder if you can talk a little bit about distributor and customer behavior as interest rates have fallen a lot. Have they rotated into other products? Are fixed annuity sales still attractive? And how we should sort of think about the mix given the current interest rate environment?

顯然，對於固定年金銷售來說，這是一個非常大的季度。我想知道您是否可以談談經銷商和客戶的行為，因為利率已經下降了很多。他們是否已轉向其他產品？固定年金銷售仍然有吸引力嗎？考慮到目前的利率環境，我們應該如何考慮這種組合？

Fixed annuities and fixed index annuities continue to be very attractive. They were attractive at times when the rate environment was a little bit lower, and the rate environment continues to be very supportive. And I think that the fixed income asset class is something that people have really woken up to as part of the long-term savings plan. Since the turn in interest rates really back in 2022 and the advisers that we work with are continuing to focus on ensuring that people are securing their financial futures relative to those long-term plans.

固定年金和固定指數年金仍然非常有吸引力。當利率環境稍低時，它們很有吸引力，而且利率環境仍然非常有利。我認為，人們已經真正意識到固定收益資產類別是長期儲蓄計畫的一部分。自 2022 年利率真正轉向以來，與我們合作的顧問將繼續專注於確保人們相對於這些長期計劃的財務未來得到保障。

And what I would say is that, I mean, we're very proud of our execution in working with our distribution partners to mobilize these very attractive products. And even if rates were to come back a little bit, we still see extremely attractive margins. These are extremely attractive return profiles for our customers. And we feel very confident in our position with the fixed and indexed annuities businesses.

我想說的是，我的意思是，我們對與分銷合作夥伴合作調動這些非常有吸引力的產品的執行力感到非常自豪。即使利率略有回升，我們仍然看到極具吸引力的利潤率。這些對我們的客戶來說是極具吸引力的回報概況。我們對固定年金和指數年金業務的地位非常有信心。

And I'm not asking specific numbers, but the amount of flows that we saw in 4Q, can we look at it and say that the 2024 outlook looks to be in some sort of a supportive range of the generation you did in the last quarter of '23?

我問的不是具體數字，而是我們在第四季度看到的流量數量，我們可以看看它並說 2024 年的前景看起來處於上一季度這一代人的某種支持範圍內'23？

Well, the last quarter of 2023 was a unique quarter, and I think what the future environment is going to be in both terms of sales and surrenders is going to ultimately depend where rates are. As I just mentioned, we continue to see strong demand, and surrenders continue to be within our expectations. If rates were to go up again, we would see increased surrenders again, which also creates new business opportunities.

好吧，2023 年最後一個季度是一個獨特的季度，我認為未來的銷售和退保環境將最終取決於費率。正如我剛才提到的，我們繼續看到強勁的需求，退保率繼續在我們的預期之內。如果利率再次上漲，我們將再次看到退保增加，這也創造了新的商機。

As Elias pointed out, we do have some blocks that will be exiting their surrender protection period, and we would expect that surrenders would increase a little bit as we do in the first quarter, but we still expect for the general accounts to continue to grow.

正如埃利亞斯指出的那樣，我們確實有一些區塊將退出退保保護期，我們預計退保會像第一季一樣略有增加，但我們仍然預計一般帳戶將繼續增長。

Our next question is from Joel Hurwitz from Dowling & Partners.

我們的下一個問題來自 Dowling & Partners 的 Joel Hurwitz。

So a very strong year for new business generation for you guys, particularly Individual Retirement and Institutional Markets. I guess, can you help size the amount of capital deployed for -- deployed in '23 for organic growth and how that might have compared to prior year?

對你們來說，這是新業務發展非常強勁的一年，特別是個人退休和機構市場。我想，您能否幫助確定 23 年為實現有機成長而部署的資本金額以及與前一年相比如何？

Joel, it's Elias. We have not given any quantification, but here's what I'll tell you. We're very disciplined with how we manage the balance sheet. And we're very proactive with how we manage the balance sheet. During 2023, we grew our RBC from 411% at the beginning of the year and where we're ending between 420% and 430%. At the same time, the insurance company has distributed about $2 billion of dividends, and that was about 50 RBC points, and we had a record sales period, and we were able to kind of deliver through that. And my expectation is the discipline we've demonstrated from a capital perspective is that's kind of core to us, and we're going to continue that going forward.

喬爾，我是埃利亞斯。我們沒有給出任何量化，但我會告訴你。我們對資產負債表的管理非常嚴格。我們非常積極主動地管理資產負債表。 2023 年，我們的 RBC 成長了，從年初的 411% 到年底的 420% 到 430%。與此同時，保險公司分配了約 20 億美元的股息，相當於 50 個 RBC 點，我們的銷售期創下了紀錄，我們能夠透過這一點實現目標。我的期望是，我們從資本角度展示的紀律是我們的核心，我們將繼續前進。

Okay. I guess just sticking on that, so $2 billion again in distributions from the insurance subs. I guess how do you see that growing, right? Your earnings have grown quite significantly, particularly this year and should be pretty solid moving forward. How do you see that $2 billion growing in and supporting your payout ratio over the medium term?

好的。我想只要堅持下去，那麼保險子公司就會再次分配 20 億美元。我想你如何看待這種成長，對嗎？你的收入成長相當顯著，尤其是今年，未來應該會相當穩健。您如何看待 20 億美元在中期內成長並支持您的股利支付率？

Well, we do see -- given the growth in earnings and the strength of the balance sheet, we expect the dividends from the insurance companies over time to grow in line to fund us at the 60% to 65% payout ratio. And if you look at the track record of our insurance companies, they've distributed over $2 billion a year. And we've got strong parent liquidity and a strong balance sheet. So sitting here today as the CFO, I feel confident in our ability to deliver on the 60% to 65%.

嗯，我們確實看到——考慮到收益的增長和資產負債表的實力，我們預計保險公司的股息隨著時間的推移將增長，以 60% 至 65% 的支付率為我們提供資金。如果你看看我們保險公司的往績記錄，他們每年的賠償金額超過 20 億美元。我們擁有強大的母公司流動性和強大的資產負債表。因此，今天作為財務長坐在這裡，我對我們實現 60% 至 65% 目標的能力充滿信心。

Our next question is from Jimmy Bhullar from JPMorgan.

我們的下一個問題來自摩根大通的吉米·布拉爾。

So first, just a question on spreads in the Group Retirement business. So they've expanded this year versus last year, and I'm talking about the base spread. But if we look sequentially, they're down each of the last 2 quarters. So clearly, they're at very attractive levels. But assuming interest rates stay where they are right now, would you expect further improvement in spreads? Or are they to a point where any future benefits on yields are going to be offset by just competitive conditions and you having to raise crediting rates as well as we've seen in the last couple of quarters?

首先，我想問一個關於團體退休業務利差的問題。因此，今年與去年相比，它們有所擴大，我說的是基本利差。但如果我們按順序查看，它們在過去兩個季度中每個季度都在下降。很明顯，它們處於非常有吸引力的水平。但假設利率維持在目前水平，您是否預期利差會進一步改善？或者說，未來的收益率收益是否會被競爭條件所抵消，而您必須提高信貸利率，就像我們在過去幾個季度所看到的那樣？

There's a number of dynamics in Group Retirement that, I think, have reflected with respect to that trend that you observed there. And part of it is that the age of the -- let's first talk about the implant part of the business, right? I mean there's customers, as Elias pointed out to, that are at that retirement age that are moving from accumulation to decumulation. And sometimes those customers, as you would expect, have larger account values but also higher guaranteed minimum interest rates. And these are the areas where we're seeing the net outflows. It's in the younger customers that are earlier in their savings periods that we're actually seeing offsetting positive inflows, and of course, those come along with lower guaranteed minimum interest rates.

我認為，集體退休中存在許多動態，這些動態已經反映了您在那裡觀察到的趨勢。部分原因是——讓我們先談談業務的植入部分，對嗎？我的意思是，正如埃利亞斯指出的那樣，有些客戶正處於退休年齡，正在從累積轉向減少。有時，正如您所期望的那樣，這些客戶擁有更大的帳戶價值，但保證的最低利率也更高。這些是我們看到資金淨流出的領域。我們實際上看到的是儲蓄期較早的年輕客戶抵消了積極的資金流入，當然，這些客戶的保證最低利率也較低。

And so the effect that you're seeing there with a little bit of spread compression is in part an outcome of this dynamic between the older and the younger customers. But the other part of the Group Retirement business that I would -- I'd point to is the out-of-plan business. This is where we have the fixed annuities, indexed annuities as well as the advisory and brokerage platform, which actually has $42 billion in assets under management today and is growing. And the total assets under management in the Group Retirement business are also growing. It reached $122 billion today. And as Elias pointed out, the earnings have been consistent in that business for the last number of years.

因此，您所看到的稍微壓縮點差的效果部分是年長客戶和年輕客戶之間這種動態的結果。但我要指出的集團退休業務的另一部分是計劃外業務。這就是我們擁有固定年金、指數年金以及諮詢和經紀平台的地方，目前該平台實際上管理著 420 億美元的資產，並且還在不斷增長。集團退休業務管理的總資產也不斷成長。今天已達到 1,220 億美元。正如埃利亞斯指出的那樣，過去幾年該業務的盈利一直保持穩定。

And there's a strong balance between spread income and fee income in Group Retirement. So the spread income is one dynamic, but the growth in the fee income base is another dynamic, and we see upside opportunities across this business.

團體退休金的利差收入和費用收入之間存在著強烈的平衡。因此，價差收入是一種動態，但費用收入基礎的成長是另一種動態，我們看到了該業務的上升機會。

And if I can add, Jimmy, if you look at the numbers, while base spread income came down, fee income went up 7% year-over-year. And then the advisory and brokerage net flows are not included in our net flows. So if you adjust that, actually, the net outflows would be less.

吉米，我可以補充一下，如果你看一下這些數字，雖然基本利差收入下降了，但費用收入卻比去年同期增加了 7%。然後諮詢和經紀淨流量不包括在我們的淨流量中。因此，如果你進行調整，實際上淨流出將會減少。

Yes, yes. And then maybe one on individual life. If we look at your margins over the course of this year, they've fluctuated, like last quarter was better than normal, this quarter seemed like it was worse than normal. Is that just sort of aberration and normal volatility? And do you view this -- the year as a whole, 2024 as a whole -- or '23 as a whole sort of a good level to use for margins in individual life going forward?

是的是的。然後也許是關於個人生活的。如果我們看看今年的利潤率，就會發現它們一直在波動，就像上個季度比正常情況要好，而本季似乎比正常情況更差。這只是一種異常現象和正常波動嗎？您是否認為這一年——全年、2024 年——或者 23 年——作為個人未來生活利潤的一個良好水平？

In the universal life, it still has sort of the volatility effect. I mean LDTI did not necessarily change the reporting basis for the UL business. And in mortality, there is expected volatility. As you pointed out, the fourth quarter was a little bit high for us, but the previous couple of quarters were actually well within expectations. And as we look at the full year, just within UL, that remained within our expectations and across the entire mortality portfolio was within our expectations.

在普遍生活中，它仍然具有某種波動效應。我的意思是 LDTI 不一定會改變 UL 業務的報告基礎。死亡率存在預期波動。正如您所指出的，第四季度對我們來說有點高，但前幾季實際上完全符合預期。當我們審視全年時，僅在 UL 內，這仍然在我們的預期之內，整個死亡率組合也在我們的預期之內。

And so we do view it as a full year level, and we haven't seen anything in the data that suggests any change to our long-term assumptions.

因此，我們確實將其視為全年水平，我們沒有看到數據中的任何內容表明我們的長期假設有任何變化。

Our next question is from Tom Gallagher from Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Tom Gallagher。

Just a follow-up on Ryan's question. Given that you're going to be setting up the Bermuda captive, are you more likely to consider internal reinsurance as your primary option to optimize capital? Or are you also strongly considering external potential risk transfer as well?

只是瑞安問題的後續。鑑於您將設立百慕達自保公司，您是否更有可能考慮將內部再保險作為優化資本的主要選擇？還是您也在強烈考慮外部潛在風險轉移？

We consider all options. We understand that, that is our opportunity as well as our obligation as management to look for opportunities to optimize the portfolio and create shareholder value. As I mentioned earlier, we have a Bermuda entity, and it is capitalized. We are working on essentially expanding its license to be able to support part of our new business. But there are other opportunities that we have relative to the Bermuda entity over time.

我們考慮所有的選擇。我們明白，這是我們的機會，也是我們身為管理階層的義務，尋找優化投資組合、創造股東價值的機會。正如我之前提到的，我們有一個百慕達實體，並且是資本化的。我們正在努力擴大其許可範圍，以便能夠支援我們的部分新業務。但隨著時間的推移，我們也擁有與百慕達實體相關的其他機會。

But in addition to that, we are currently aware of market conditions with external parties relative to potential transactions and evaluating those opportunities. And we will continue to do so. And as I pointed out earlier, we have nothing to report at this time.

但除此之外，我們目前也了解外部各方與潛在交易相關的市場狀況並評估這些機會。我們將繼續這樣做。正如我之前指出的，我們目前沒有什麼可報告的。

Great. That's helpful color, Kevin. The -- my follow-up is just on the investment side. So one observation and question is, I noticed your commercial mortgage loan reserves for office actually declined from 3Q. I think it was 5.9% last quarter, down to 5.2% this quarter. Just curious what drove that. Was that from maturities or from closures?

偉大的。這是有用的顏色，凱文。我的後續行動只是在投資方面。所以一個觀察和問題是，我注意到你們的商業抵押貸款準備金實際上從第三季開始下降。我認為上個季度是 5.9%，本季下降到 5.2%。只是好奇是什麼推動了這一點。這是因為到期還是關閉？

And then a broader question on multifamily. I know that's your biggest exposure on the commercial mortgage loan side, there's been some new market concerns in that asset class. Just if you could give a little perspective on how you're feeling about multifamily.

然後是關於多戶家庭的更廣泛的問題。我知道這是您在商業抵押貸款方面最大的風險敞口，該資產類別出現了一些新的市場擔憂。只是希望您能談談您對多戶家庭的看法。

Tom, it's Elias. We have no foreclosures in the book. So the reduction in our allowance for offices more having to do with resolution loans, but there's no foreclosures in our portfolio. And we continue to believe our allowance for loan loss in total and specifically on office continues to be pretty robust from there.

湯姆，我是埃利亞斯。我們書中沒有取消抵押品贖回權。因此，我們對辦公室津貼的減少更多地與處置貸款有關，但我們的投資組合中沒有取消抵押品贖回權的情況。我們仍然相信，我們的貸款損失準備金總額，特別是辦公室貸款損失準備金，從那時起仍然相當強勁。

With respect to multifamily, yes, it is our largest exposure, and we participate in it both on the debt and the equity side, and we feel comfortable with our portfolio. It's high-quality. Cash flow to the property levels are strong. LTVs, debt service coverage ratios are strong. With respect to kind of concerns about rent control specifically in New York, our exposure to rent control is de minimis in our portfolio. So that's not something we're worried about.

就多戶家庭而言，是的，這是我們最大的風險敞口，我們在債務和股權方面都參與其中，我們對我們的投資組合感到滿意。這是高品質的。流向房地產的現金流強勁。 LTV、償債覆蓋率都很高。考慮到對紐約租金管制的擔憂，我們對租金管制的風險在我們的投資組合中是微不足道的。所以這不是我們擔心的事情。

Next question is from Elyse Greenspan from Wells Fargo.

下一個問題來自富國銀行的艾莉絲‧格林斯潘。

My first question, just on capital return. You guys started right buying back shares in the open market. How should we think about, in '24, the balance of buying back shares in the open market and then wanting to participate as there is future secondaries from AIG?

我的第一個問題，關於資本回報。你們開始在公開市場上回購股票。在 24 年，我們應該如何考慮在公開市場回購股票和由於 AIG 未來有二級市場而想要參與的平衡？

Elyse, it's Elias. Listen, I think our outlook is we're going to buy back shares in open market. And if there's opportunities to participate in AIG sell-downs, we will consider it and do it. But our game plan, we're not dependent on AIG to do a secondary for us to deliver on our capital return.

伊莉絲，是埃利亞斯。聽著，我認為我們的前景是我們將在公開市場回購股票。如果有機會參與 AIG 的拋售，我們會考慮並去做。但我們的策略計劃是，我們並不依賴 AIG 為我們提供二級服務來實現我們的資本回報。

Okay. And then my second question, we saw PRT activity picked up in the fourth quarter. My sense is we're not seeing as much of the same seasonality with Q4 being the highest as we used to in the past. If you can you just give us a sense of the outlook that you have on the PRT side? And if you expect or don't expect to see seasonality with transactions in '24?

好的。然後是我的第二個問題，我們看到 PRT 活動在第四季度有所回升。我的感覺是，我們沒有看到與過去一樣的季節性，第四季是最高的。您能否為我們介紹一下您對 PRT 方面的看法？您是否期望或不期望在 24 年看到交易的季節性？

Yes. Thanks, Elyse. What we see in pension risk transfer is a very strong pipeline continuing for the market segments that we're focused on, which is full plan terminations. Full plan terminations are somewhat more structured and complex than some of the longevity-focused transactions. And the pipeline for those is a little bit longer term. I think there has been a bit of a change in calendarization with the change in the external market. But both for the U.S. and for the U.K., which are the 2 markets where we participate, we see a very robust pipeline coming into 2024.

是的。謝謝，愛麗絲。我們在退休金風險轉移中看到的是，我們重點關注的細分市場有一個非常強大的管道，即全面計劃終止。與一些注重長壽的交易相比，全面計劃終止的結構更加結構化且複雜。這些的管道是有點長期。我認為隨著外部市場的變化，日曆安排也發生了一些變化。但對於我們參與的美國和英國這兩個市場，我們都看到 2024 年將有一個非常強勁的管道。

Our next question is from John Barnidge at Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 John Barnidge。

With the expense saves fully earning in by the end of '24 and a focus on continuous improvement, how should we be thinking about the operating expense growth as you would think -- as you would look towards '25?

隨著費用節省在 24 年底完全盈利並專注於持續改進，我們應該如何像您想像的那樣考慮運營費用增長 - 就像您對 25 的期望一樣？

Yes, thanks. So we are very happy with the progress on Corebridge Forward so far. We've achieved about $350 million of the target there, and we expect about half of that to earn into our run rate this year. And we still have the continuing outcomes from Corebridge Forward to deliver. As we look beyond and adoption of a sense of continuous improvement, I think this is where we'll benefit from the investments that we've made in our operating platform, and we'll continue to respond to growth opportunities as they emerge. And so we would expect an incremental improvement in operational efficiency as we benefit from the work that we've done so far and continue to focus from that.

對了謝謝。因此，我們對 Corebridge Forward 迄今為止的進展感到非常滿意。我們已經實現了大約 3.5 億美元的目標，我們預計其中大約一半將計入今年的運行率。我們仍有 Corebridge Forward 的持續成果需要交付。當我們超越並採取持續改進的意識時，我認為這就是我們將從我們在營運平台上所做的投資中受益的地方，並且我們將繼續應對出現的成長機會。因此，隨著我們從迄今為止所做的工作中受益並繼續關注這項工作，我們預計營運效率將逐步提高。

And then a question on the higher frequency and smaller claims in the life portfolio. Some have talked about infectious disease season being earlier this year, more 4Q than 1Q. Does that experience line up with that thought process as well?

然後是關於人壽投資組合中較高頻率和較小索賠的問題。有人談到今年傳染病季節提前，第四季比第一季早。這種經驗也符合這個思考過程嗎？

Actually, in our case, we haven't observed this particular dynamic. And as I pointed out earlier, as we look into the data, we haven't seen anything to suggest other than just an anomalous quarter. And mortality, while in many respects, is very predictable, the actual timing of mortality is not so predictable. And that's why we do continue to expect them to see some volatility quarter-to-quarter, and we need to look at mortality over a longer time frame.

事實上，在我們的例子中，我們還沒有觀察到這種特殊的動態。正如我之前指出的，當我們研究數據時，除了季度異常之外，我們沒有看到任何其他跡象。雖然死亡率在許多方面都是可以預測的，但實際死亡的時間卻不那麼可預測。這就是為什麼我們仍然預計它們會出現季度與季度之間的一些波動，並且我們需要在更長的時間內關注死亡率。

Our next question is from Suneet Kamath from Jefferies.

我們的下一個問題來自 Jefferies 的 Suneet Kamath。

Listening to your prepared remarks, I had thought that the commentary that you made about optimization of the business mix was in your discussion on the Life Insurance business. So is that really where we should think about your focus being? Or is it broader than that?

聽你事先準備好的發言，我以為你關於優化業務結構的評論是在你關於壽險業務的討論中。那麼這真的是我們該考慮的重點嗎？或者它比這更廣泛？

With respect to the Life Insurance business, we have changed our business mix in the last couple of years. We've been kind of open talking about that and moving away from more interest-sensitive products into our very successful term suite as well as simplified products for the middle market and our indexed universal life product range. And those are the segments that we continue to focus on and anticipate its advantage.

在人壽保險業務方面，我們在過去幾年改變了業務結構。我們一直在公開談論這一點，並從對利率更敏感的產品轉向我們非常成功的期限套件以及針對中間市場的簡化產品和我們的索引萬能壽險產品系列。這些是我們繼續關注並預測其優勢的細分市場。

Yes. Suneet, the other thing I had, given our broad suite of products, we're constantly optimizing given where we see demand for product as well as where we think we can get the best risk-adjusted returns on the capital we deploy. So that's a regular activity.

是的。 Suneet，我的另一件事是，考慮到我們廣泛的產品組合，我們不斷優化我們看到的產品需求以及我們認為可以從我們部署的資本中獲得最佳風險調整回報的地方。所以這是一項例行活動。

Okay. Got it. And then I guess just going back to the annuity sales, obviously, very strong here in the quarter. Can you just provide some color on maybe where those sales are coming from, if it's a particular channel and maybe how much of that is coming from rollovers of 401(k) plans or assets?

好的。知道了。然後我想回到年金銷售，顯然，本季非常強勁。您能否提供一些信息，說明這些銷售可能來自何處、是否是特定管道以及其中有多少來自 401(k) 計劃或資產的展期？

So the channels that are the most robust for us right now with respect to fixed and fixed-index annuities are the bank and the broker-dealer channels with a lesser participation in the IMO channel. And in terms of the sources of the assets, we don't report on what the various sources of the asset is. What I'll say is that as we've experienced and as we would expect, customers coming out of existing annuities products certainly have the opportunity to reinvest. And as people move from accumulation to decumulation, fixed income is an important part of the strategy of many of the advisers that they are working with. And so I think what we're seeing is a combination of new investments in fixed income because the value proposition for fixed income investments is much stronger now than just a couple of years ago as well as some regular activity of people reinvesting in their existing annuity products.

因此，目前就固定和固定指數年金而言，對我們來說最強大的管道是銀行和經紀自營商管道，而 IMO 管道的參與較少。至於資產來源，我們沒有報告資產的各種來源是什麼。我要說的是，正如我們所經歷的和我們所期望的那樣，使用現有年金產品的客戶肯定有機會進行再投資。隨著人們從累積轉向減少，固定收益成為許多與他們合作的顧問策略的重要組成部分。因此，我認為我們看到的是固定收益新投資的組合，因為固定收益投資的價值主張現在比幾年前要強得多，而且人們對現有年金進行再投資的一些常規活動產品。

Our next question comes from Mike Ward at Citi.

我們的下一個問題來自花旗銀行的麥克沃德。

Maybe on the Bermuda entity real quick. I was just wondering if you could maybe help us think about any potential impact on free cash flow conversion from higher utilization of that over time?

也許很快就會在百慕達實體上。我只是想知道您是否可以幫助我們考慮隨著時間的推移，更高的利用率對自由現金流轉換的潛在影響？

Mike, it's Elias. So here's what I'd say about the Bermuda entity at this point. We believe it will increase our financial flexibility that either gives us flexibility for more growth or to do other things with it. We're still through the regulatory process. So we're not going to quantify anything at this point. So we're done through that process at this stage.

麥克，這是埃利亞斯。以下是我目前對百慕達實體的看法。我們相信，這將提高我們的財務靈活性，使我們能夠靈活地實現更大的成長或用它來做其他事情。我們仍在通過監管程序。所以我們現在不會量化任何事情。所以我們在這個階段已經完成了這個過程。

Okay. And then maybe on CRE, just kind of curious, the maturities that you've had so far or the ones that are in the sort of the immediate future, just kind of wondering how the resolutions have progressed. Are you taking equity? Are you making equity investments at all? Or how have they gone so far?

好的。然後也許在 CRE 上，只是有點好奇，你到目前為止的成熟度或不久的將來的成熟度，只是想知道決議的進展如何。你拿股權嗎？您是否進行股權投資？或者說他們到目前為止進展如何？

So on -- if I look at the '23 maturities, it's been a combination where we got paid off or we've agreed to an extension. And generally, whenever we've agreed an extension, we either got a partial pay down or we had the equity put in more -- the equity investor put in more equity in the property and draft cash, which ended up improving our credit position in there. We have not taken so far any equity in any of these properties.

等等——如果我看看 23 年的到期日，我們會得到回報或同意延期。一般來說，每當我們同意延期時，我們要么獲得部分付款，要么投入更多股權——股權投資者在房產中投入更多股權並提取現金，這最終改善了我們的信用狀況。到目前為止，我們尚未取得這些財產的任何股權。

We have no further questions on the call at this time. So I will hand the call back to Kevin Hogan.

目前我們對電話會議沒有進一步的問題。所以我會把電話轉給凱文·霍根。

Before we end today's call, I want to make one more point to our listeners and remind everyone the enterprise we're building here.

在結束今天的電話會議之前，我想向我們的聽眾再強調一點，並提醒大家我們在這裡建立的企業。

At Corebridge, we operate with what is a unique collection of 4 businesses that together enables our company to perform across different macroeconomic environments. We're flexible and nimble and can tailor our strategy to match changes in demand as well as our evolving view of profitability and risk. With this diversified and dynamic business model, supported by our strong balance sheet, our solid capital and liquidity positions and our history of disciplined execution, Corebridge remains focused on delivering attractive results and creating long-term value.

在 Corebridge，我們經營 4 項獨特的業務，這些業務共同使我們的公司能夠在不同的宏觀經濟環境中發揮作用。我們靈活而敏捷，可以根據需求的變化以及我們不斷變化的獲利和風險觀點來調整我們的策略。憑藉這種多元化和充滿活力的業務模式，在我們強大的資產負債表、堅實的資本和流動性狀況以及嚴格執行的歷史的支持下，Corebridge 仍然專注於提供有吸引力的業績和創造長期價值。

Thank you for joining us this morning, and have a good day.

感謝您今天早上加入我們，祝您有美好的一天。

This concludes today's conference call. Thank you all very much for joining. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝大家的加入。現在您可以斷開線路。