Corebridge Financial, Inc. CRBG is experiencing a boost from escalating premiums due to a diverse product lineup and expanding business horizons. Collaborations, robust segmental performance, and adept cash flow management are catapulting the stock upwards.
Evaluating Zacks Rank & Price Performance
Corebridge presently holds a Zacks Rank #3 (Hold).
In year-to-date figures, the stock has surged by 25.6% compared to the industry’s 6.8% and the Finance sector’s 4.1% as well as the S&P 500 Composite’s 9.4% growth in the same timeframe.
Image Source: Zacks Investment Research
Rising Projections
Corebridge’s estimated 2024 earnings stand at $4.87 per share, reflecting a 18.8% improvement from 2023.
Revenue projections point to $23.1 billion, indicating a 24.1% surge from 2023. CRBG has exceeded earnings estimates in three of the last four quarters, with an average surprise of 7%.
Impressive Return on Equity
The current return on equity for Corebridge stands at 23.1%, surpassing the industry average of 13.7%. This figure underscores the company’s adept capital utilization.
Driving Forces
Corebridge’s revenue growth is propelled by escalating premiums and investment income. Premiums, a key revenue source for insurers, saw a 51.1% surge in 2023 for CRBG. The company’s traditional life insurance and annuity products fuel this revenue stream, alongside elevated policy sales and strong retention rates.
Furthermore, revenue growth is bolstered by increased yields from the investment portfolio. Corebridge’s comprehensive advisory platform offers robust investment and retirement planning services, catering to long-term clientele and ensuring a steady flow of advisory fee income. With the aging U.S. population driving demand for retirement services, CRBG is poised for sustained growth.
Through its varied businesses like Individual and Group Retirement, Life Insurance, and Institutional Markets, Corebridge generates substantial cash flows. By enhancing its product portfolio to meet evolving customer needs, the company continues to thrive.
Strategic partnerships, like the one with Blackstone, enable Corebridge to access attractive fixed-income assets, enhancing its competitiveness. Divestitures, such as the UK life insurance business sale to Aviva plc, allow CRBG to focus on core operations. Technological investments and digital advancements further solidify its position in the market.
A robust cash position and strong operating cash flows equip Corebridge to pursue strategic investments seamlessly. Notably, in 2023, it generated operating cash flows of $3.4 billion.
Moreover, the company’s financial strength enables significant returns to shareholders through buybacks and dividends. In December 2023, CRBG repurchased common shares worth $150 million. With a dividend yield of 3.4%, exceeding the industry average, Corebridge targets a payout ratio of 60%-65% for 2024.
Worth Considering
An alternative stock worth exploring in the finance sector is Coinbase Global, Inc. COIN, currently holding a Zacks Rank #1 (Strong Buy). Coinbase Global has consistently outperformed earnings estimates in the past year, with shares soaring by 286.4%.
The Zacks Consensus Estimate for COIN’s 2024 and 2025 earnings has surged by 66.3% and 114.7%, respectively, in the last 30 days, signaling analyst optimism.
Please note: The views and opinions expressed in this article are the author’s and may not necessarily reflect those of Nasdaq, Inc.
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