Corebridge Financial Inc.

Hello, everyone. Thank you for joining us and welcome to the Corbridge Financial Inc. Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I would now like to hand the conference over to Isil Muderrisoglu, Head of Investor and Rating Agency Relations. Please go ahead.

Good morning, everyone, and welcome to Corbridge Financial's earnings update for the second quarter of 2026. Joining me on the call are Marc Costantini, President and Chief Executive Officer, Chris Filiaggi, our Interim Chief Financial Officer, and Lisa Longino, our Chief Investment Officer. We will begin with prepared remarks by Marc and Chris, and then we will take your questions. Today's comments may contain forward-looking statements which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based upon management's current expectations and assumptions. Corbridge's filings with the SEC provide details on important factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Except as required by the applicable securities laws, Corbridge is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change, and your caution to not place undue reliance on any forward-looking statements. Additionally, today's remarks may refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is included in our earnings release, financial supplement, and earnings presentation, all of which are available on our website at investors.corbridgefinancial.com. With that, I would like to now turn the call over to Marc and Chris for their prepared remarks. Marc?

Good morning, and thanks for joining us. I'm delighted to be with you today following the successful shareholder vote, approving the merger with Equible. The shareholders' support of this transaction is a powerful validation of the attractiveness of the combined company. We're more confident than ever about the future we're building together. Turning to the second quarter highlights, We delivered strong results consistent with our full-year guidance. Core sources of income were up 5% year-over-year. While variable investment income came in below our long-term expectations, our underlying fundamentals remained strong. Our run rate earnings per share were up 16% year-over-year. Consistent with guidance, our adjusted return on equity, excluding VII, was up 90 basis points year-over-year to 10.9%. and our cash generation remains strong. We've now generated cash in excess of $400 million for 14 consecutive quarters, showcasing the strength of our balance sheet and underlying businesses. In the second quarter, we returned $412 million of capital to shareholders, including $300 million of share repurchases for a year to date normalized payout ratio of 84%. Turning to slide four, our top line performance was resilient. While total company sales were down year over year, sales increased sequentially by 13%. Furthermore, on a rolling 12-month basis, which adjusts for seasonal fluctuations and the lumpy nature of the pension risk transfer business, we saw total company sales growth by 4% year over year. This is a testament to our product depth and commitment to margin integrity across cycles. Equally important, we excel at allocating capital efficiently. Of note, Our breadth of distribution enables us to shift between products and businesses to where the risk-adjusted returns are most attractive. In individual retirement, we've been a top five provider for more than a decade and are the only insurer with a top 10 sales ranking across all annuity products. We continue to prioritize pricing discipline given tighter competition. Conditions improve in the latter part of the quarter as yields rose and sales momentum resumed, making June the strongest sales month of the year. All else being equal, we expect steady sales and positive net flows for the rest of the year. In group retirement, our transition from a spread to fee-based business is continuing in line with expectations. In the quarter, our wealth management assets rose to $20 billion, an 18% increase year over year. We continue to see a $30 billion growth opportunity by further capturing IRA rollovers and consolidating household assets within our current customer base. As a result of our efforts to improve the customer experience, we are also starting to see an uptick in group retirement business wins. In our life business, we've been a top tier provider of term life for nearly a decade. In the quarter, we delivered run rate earnings above our typical guide, reflecting strong underwriting results. Our sales continue to benefit from our platform that leverages automated underwriting for more than 80% of the new business. Turning to institutional markets, The gig market has grown rapidly over the past few years, with Corbidge's reserves nearly doubling over the same time period. In the quarter, we issued $1.8 billion of gigs at attractive IRRs, and we continue to see meaningful opportunities for the remainder of the year. Our gig book represents 5% of our general account compared to 10 to 15% for major competitors, demonstrating ample room for additional growth. In the PRT market, We still expect activity to be weighted in the back half of the year. Nothing in this market has changed. Pension plans remain overfunded, the appetite for de-risking solutions remains strong, and we expect the double-digit reserve growth we've achieved since 2021 to continue. Turning to slide five, since we announced the transaction, our conviction has only grown that the merch company will be uniquely positioned to deliver exceptional value. Our industry is in the midst of significant growth opportunity. Annuity sales have grown from roughly $250 billion a year in 2021 to more than $450 billion in 2025. Despite this growth, New Corbridge Research finds that only 28% of people are confident spending in retirement, with fears of running out of money being the top concern. By contrast, those with a decumulation plan, especially one that includes guaranteed lifetime income, are far more confident. In short, many more Americans want and need our advice and solutions. Another powerful trend is the massive transfer of wealth between generations, with $100 trillion in assets that is expected to be transferred by mid-century, which will fuel growth in the wealth business. In addition, the life insurance protection gap remains significant, with 100 million Americans expressing a need for coverage. The merger creates a company that is well positioned to capture this opportunity and drive profitable growth. Starting out, the combined firm will have over 10 million customers. Given the tremendous financial needs we see, our aspiration is to significantly grow that number over time. We will have all the right attributes to succeed. Our scale will give us a lower cost of capital, greater efficiency, comprehensive customer solutions and the ability to invest more while attracting top talent. will have a large and formidable multi-channel distribution system to reach the broadest possible customer base. Our integrated business model will capture the full value chain from manufacturing through distribution to asset management. And our commitment to sound financial principles means we'll write business at attractive margins and deliver consistent capital return. By 2027, the combined company is set to unlock a compelling financial performance with $5 billion of earnings, $4 billion in cash generation, and a return on equity of over 15%. With 500 million cost synergies directly supporting these targets and a clear pathway to additional value through revenue synergies, we have a clear right to win. We continue to make excellent progress toward closing the transaction. In addition to the successful shareholder vote, the leadership structure of the combined company continues to take shape. We have determined the first three levels of the organization and I'm confident we're building the right team to win. The Joint Integration and Transformation Office continues to coordinate all merger activity with the goal of ensuring operational excellence for the new company. We are actively collaborating with key distribution partners to ensure a seamless transition. And on day one, we are well positioned to win with our customers. The regulatory review process is proceeding on pace. Federal antitrust review is complete. FINRA approval of the broker dealer change and control is complete. and all state and international regulatory filings have been submitted. We expect to announce the board of the new company in the near future and we still anticipate that their transaction will close by year end, allowing us to hit the ground running in 2027. To win in our industry, we need to have a differentiated customer value proposition, go to market with world-class distribution and be the easiest company to do business with. Putting the customer at the center of everything we do is a top to bottom commitment. Our customer council, sponsored by the executive leadership team, is driving customer focus across a number of initiatives. Everything from the frontline service experience and the technology enablement to our corporate culture and customer safeguards. Our new customer champions network, representing every business and function at Corbridge, is ensuring we bring the voice of the customer and our distribution partners to everything we do. Across every phase of the customer journey, we're committed to driving continuous improvement. In group retirement, our plan sponsor Net Promoter Score, a key customer service metric, rose 19 points year over year. But we still have more work to do. My goal for the group retirement business is top quartile service. Digital remains a key focus area. For example, we recently launched AI agents in our group retirement customer contact center to provide a better call experience. This quickly reduced repeat calls and average handling times. In life, we enhanced our digital service infrastructure, and more broadly, we're implementing a new business acquisition platform. Our goal is an industry-leading new business experience that increases fully digital submissions and speeds up suitability checks, with 50% of policies issued in 30 minutes or less. Within individual retirement, our focus is on empowering financial advisors by removing friction from their day-to-day operations. Through our support of the Insured Retirement Institute's Digital First initiative, we are modernizing the tool advisors rely on while simultaneously refining our internal workflows to eliminate application errors and accelerate policy issuance. By streamlining these touchpoints, we enable advisors to dedicate more time to their clients and the growth of their practices, all while driving greater operational efficiency behind the scenes. In closing, I want to express the strong commitment of the entire leadership team to exceptional value creation, both now and in the future. Thank you again for your approval of the merger. I'm confident the combined company has the right to win, and I can't wait for day one to get here. With that, I'll turn the call over to Chris.