Opinions
Mike Vinokur
Corebridge Financial, Inc.
CRBG-N
TOP PICK
Mar 07, 2025
Stock price when the opinion was issued
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CRBG provides annuity and insurance financial products primarily to retirees in the US. The company trades at 5x earnings, 1.3x book value and supports a ROE of 44%. Recently reported earnings for 2022 showed revenue growth of 14%, income growth of 11% and a 31% profit margin. We like that it is building cash reserves while aggressively retiring debt. We recommend a stop loss at $14, looking to achieve $24.50 -- upside potential over 50%. Yield 2.9%
(Analysts’ price target is $24.77)We reiterate CRBG, manager of $365 billion in financial assets, as a TOP PICK. The company announced a $0.62 special dividend to holders of record on June 16 - on top of the regular quarterly dividend of $0.23. Cash reserves are growing, while debt is aggressively retired. It trades at 1.3x book and supports a ROE of 27%. We recommend trailing up the stop (from $14) to $15, looking to achieve $24 -- upside potential of 37%. Yield 4.1%
(Analysts’ price target is $24.46)As one of the largest retirement solutions providers in the US, managing over $370 billion in assets, we reiterate CRBG as a TOP PICK. Recently reported earnings revealed deposits and margins expanded over 42% each over the year. Cash reserves are growing as debt is aggressively retired. It trades at 5x earnings, 1.1x book and supports a 21% ROE. We recommend trailing up the stop (from $15.00) to $16.50, looking to achieve $24.00 -- upside potential of 23%. Yield 4.6%
(Analysts’ price target is $24.67)We reiterate this US retirement and insurance provider, with over $370 billion in assets under management, as a TOP PICK. It trades at 5x earnings, 1.2x book and supports a ROE of 21%. Deposits and premiums grew over 40% over the year to almost $10 billion. Cash reserves are growing, while to company is aggressively retiring debt. It pays a good dividend, backed by a payout ratio under 25% of cash flow. We recommend trailing up the stop (from $16.50) to $17.50, looking to achieve $25.00 -- upside potential over 30%. Yield 4.8%
(Analysts’ price target is $25.08)We again reiterate CRBG as a TOP PICK. It trades at 5x earnings, 1.2x book and supports a 21% ROE. We like that cash reserves are growing, while debt is retired. It pays a nice dividend, backed by a payout ratio under 25% of cash flow. We recommend trailing up the stop (from $17.50) to $19.50, look to achieve $25 -- upside potential of 19%. Yield 4.4%
(Analysts’ price target is $24.92)Our PAST TOP PICK with CRBG has triggered its stop at $19.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 6%, when combined with our previous recommendations.
Spun out of AIG, in retirement and life insurance business. Very cheap. They've been buying back shares. They have earnings power of $5/share, so you're paying over 6x earnings (vs. MFC's 11x PE). They have excess capital on the balance sheet. Pays a 3% dividend. It benefits from higher interest rates. Is up 47% this year.
(Analysts’ price target is $34.64)CRBG has done well, up 49% this year, yet remains very cheap at 6.7X earnings with a 2.84% yield. The recent quarter was solid with an 18% 'beat' over earnings estimates. Corebridge is well-positioned to reach consensus for double-digit EPS gains in 2025-26 given solid organic growth in its flagship individual annuities business and robust reserve gains in the institutional spread operations. Life insurance sales have also expanded, rising 14% in 3Q. In traditional fixed annuities, deposits have doubled year to date, to $9.5 billion, the surrender pace is down 5 percentage points vs. a year ago and general account assets are up 16% to $58 billion. For fixed-index annuities, the general account has increased 30% vs. 3Q23. Corebridge’s results are also benefiting from recent expense savings of about $400 million and accelerating share buybacks. The share count declined 8% in 3Q. Things continue to look very good here.
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Spinoff from AIG. Life insurance and retirement products. Well run. Great margin of safety. Trading at 6x forward PE. Earnings can grow quickly. Very large regulatory base of capital (RBC), well above buffers required. Serial acquires of stock, which is very accretive at this price. Yield is 3.06%.
(Analysts’ price target is $38.60)