“We continue to target debt leverage in the high 20s, excluding AOCI for Corebridge; and in the low 20s, including AOCI for AIG going forward.”

In context

“the $223 million gain was realized as a gain in the first quarter. The senior notes offering, excluding the hedge, was well structured and laddered with a 3.91% weighted average coupon rate. Corebridge used the proceeds from that offering to repay $6.4 billion of the $8.3 billion promissory note payable to AIG. Following the success of Corebridge's senior notes issuance, AIG initiated a debt tender offer. Taking advantage of strong demand, the tender offer was upsized, and AIG parent debt was ultimately reduced by $6.8 billion. An additional EUR 750 million will be redeemed on May 10, bringing the total expected AIG parent debt reduction to $7.6 billion. The average coupon on the debt that we retired was 3.82%, and the annualized interest expense savings is approximately $290 million. We continue to target debt leverage in the high 20s, excluding AOCI for Corebridge; and in the low 20s, including AOCI for AIG going forward. Given the significant progress we have made and with $1.9 billion of proceeds from the $8.3 billion note yet to be received, we have the necessary cash to finalize our planned debt actions without utilizing any of the proceeds from the IPO. With these actions completed, we remain on track for an IPO in the second quarter subject to market conditions and regulatory approval. Net investment income on an adjusted pretax income basis for the quarter was $3 billion. Total cash and investments were $305 billion, excluding Fortitude. Net investment income in the first quarter decreased $193 million compared to prior year, primarily reflecting lower call and tender income. The first quarter saw significant increases in benchmark treasury yields, with an 80 basis point increase on the 10-year.”