Corebridge Financial manages $391 billion in retirement assets and trades at 9.5x earnings. Japan’s largest insurer just bought $70 million of it.
Corebridge Financial manages $391 billion in retirement assets. It trades at 9.5 times earnings. Japan’s largest life insurer just put $69.7 million into it in ten days.
You read this morning that Nippon Life Insurance purchased roughly $69.7 million of Corebridge Financial stock across six transactions between October 13 and 21. Tonight, let’s look at what they actually bought.
Three questions I’ll answer
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What does Corebridge Financial actually do — and why have most investors never heard the name? |
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How does a retirement products company make money — and why do higher interest rates help? |
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What does a $70 million buy from Japan’s largest insurer tell you about how they value this business? |
Most people have never heard of Corebridge. That is exactly the kind of company worth understanding. ↓
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What Nippon Life Actually Bought
Corebridge Financial (ticker: CRBG) is a life insurance and retirement services company that was spun off from AIG in September 2022. It manages $390.9 billion in assets — annuities, group retirement plans, life insurance policies, and institutional investment products. If you have a retirement account through your employer, there is a reasonable chance Corebridge is the company behind it. Most investors have never heard the name because it sits between AIG, which created it, and the financial advisors who distribute its products to the public.
HOW THE BUSINESS MAKES MONEY
Corebridge collects premiums from customers who buy annuities and insurance policies. It invests those premiums — primarily in bonds, mortgages, and other fixed-income assets — and earns a spread: the difference between what the investments return and what Corebridge credits back to policyholders. That spread is the engine of the business. When interest rates rise, new money invested earns higher yields, widening the spread. With the 10-year Treasury at 5.00%, Corebridge’s investment portfolio is repricing into higher returns — and the premiums keep arriving because Americans are retiring at a pace of roughly 10,000 per day.
THE NUMBERS
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Assets Under Management
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$390.9B
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Price-to-Earnings Ratio
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9.5x
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Total Yield (Dividend + Buyback)
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~22%
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Adjusted Book Value Per Share
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$39.70
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WHY NIPPON LIFE IS BUYING HERE
Nippon Life Insurance is Japan’s largest private life insurer. It acquired an equity stake in Corebridge from AIG and now owns roughly 10% of the company. Over ten days in October, it added $69.7 million more — all under a pre-scheduled 10b5-1 plan. The stock trades near $34. The adjusted book value — the value of the company’s net assets after accounting adjustments — is $39.70 per share. Nippon Life is buying below the value of what the company owns. And it is buying into a business where higher rates improve profitability at the same moment the U.S. retirement wave is accelerating. Corebridge has returned $5.96 billion to shareholders through buybacks and pays a quarterly dividend. Q3 earnings arrive November 2.
NATE’S TAKE
In 25 years I have seen institutions buy for many reasons. What stands out here is the combination: Japan’s largest life insurer buying below adjusted book value, at 9.5 times earnings, in a business that benefits from the exact rate environment the market is treating as a headwind for everything else. When a company managing $70 billion in assets puts $70 million into a retirement business at these levels, it is not trading the stock — it is pricing the cash flows for the next decade. Most of the market is watching tech earnings this week. Nippon Life is watching the retirement wave.
— Nate Fowler
After the Bell · Evening Special Edition
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