“Corebridge now expects spread compression to convert to expansion beginning in 2023.”

In context

“ew on our reserves. Along these lines, we've built in an expectation of higher inflation given the uncertainty over its potential impact on our reserves. Turning to Life and Retirement. Adjusted pretax income was $589 million compared to $877 million in the prior year quarter. The decrease was due to lower alternative investment, call and tender and fee income, partially offset by higher investment income from fixed maturity and loan portfolios, less adverse mortality and an improved outcome in the annual actuarial assumption review, which, other than DAC acceleration of $57 million, showed no meaningful net movement in reserves this year. Product margins were attractive and in excess of long-term targets in all businesses, supported by robust new business origination from Blackstone. Corebridge now expects spread compression to convert to expansion beginning in 2023. Strong sales momentum continued in Individual Retirement, with $3.8 billion in sales, a 16% increase year-over-year and led by over 100% growth in fixed annuity sales on a record $1.7 billion in index annuity sales. Group Retirement deposits grew 11%, driven by higher large plan acquisitions in the third quarter. The Life business had solid sales with an improving mix of business in the U.S. and continued underlying growth in the U.K. In Institutional Markets, premiums and deposits of $1.9 billion were up from $1 billion in the prior year quarter, with larger GIC issuances on higher pension risk transfer transactions. Mortality, including COVID losses, was once again below original pricing expectations. COVID losses remain within original sensitivities of $65 million to $75 million for”