Corebridge Financial, Inc. — Form 8-K Summary
Report date: June 5, 2023. The filing reports an accounting presentation update related to the adoption of Financial Accounting Standards Board Accounting Standards Update 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts” (LDTI).
Business Context and Reporting Period
Corebridge adopted LDTI on January 1, 2023, using a transition date of January 1, 2021. The filing recasts selected historical information originally included in the company’s Form 10-K for the fiscal year ended December 31, 2022.
- Traditional and limited-payment contract liabilities and related deferred policy acquisition costs were adopted using the modified retrospective method.
- Market risk benefits were adopted on a retrospective basis.
- Recast information covers fiscal years ended December 31, 2021 and December 31, 2022.
Financial Metrics and Other Key Information
This Form 8-K does not provide a standalone update to revenue, net income, cash flow, margins, debt, liquidity, or other operating metrics. It presents recast financial statements and related disclosures on an LDTI-consistent basis in Exhibit 99.1.
Material Changes Versus the Prior Comparable Period
The material change is the accounting basis used to present certain historical financial information. The filing does not identify new operating results or quantify changes to individual financial metrics in the provided text.
Revised sections of the 2022 Form 10-K include Business; Management’s Discussion and Analysis; Quantitative and Qualitative Disclosures About Market Risk; and Financial Statements and Supplementary Data.
Guidance, Outlook, Risks, and Unusual Items
- No new financial guidance or operating outlook is provided.
- No new risks, contingencies, or post-Form 10-K events are disclosed.
- The filing states that, except for the information in Exhibit 99.1, the 2022 Form 10-K remains unchanged.
- The filing does not reflect events occurring after the original February 24, 2023 Form 10-K filing and should be read with the company’s other SEC filings.
Important Facts for Investors to Verify
- Review Exhibit 99.1 for the detailed LDTI-recast financial statements, disclosures, and quantified effects on historical balances and results.
- Confirm how LDTI affected insurance liabilities, deferred policy acquisition costs, market risk benefits, accumulated other comprehensive income, and shareholders’ equity.
- Compare the recast 2021 and 2022 figures with the originally reported Form 10-K amounts to distinguish accounting presentation changes from underlying business performance.
- Review the independent registered public accounting firm’s consent in Exhibit 23.1 and the related XBRL exhibits.