Wes Carmichael — Analyst, Autonomous Research
Hey, thank you. Good morning. Just my first one on capital and insurance company dividends. I think it took $600 million or so of dividends to the holding company just with the VA transaction. Maybe. Elias, do you have any view on how that quarterly dividend amount may trend once it's fully closed? I guess assuming a relatively consistent macro environment.
Elias Habayeb — CFO, Corebridge Financial
Hey Wes, it's Elias. From an insurance company dividend, we've been growing that with the growth in earnings and for 2025 our target is to grow it by 5%-10%. There will be a minor impact with the VA transaction given we would lose about $300 million of earnings. We expect to continue to grow the dividend with the growth in the business and we continue to expect to deliver a 60%-65% payout ratio. If I go back to one of the targets we've established, we shared earlier this year that our goal is to grow EPS by 10%-15% on average over time per year. There's no change to that target. We reaffirmed it and we expect to do that by growing both earnings as well as share repurchases.
Wes Carmichael — Analyst, Autonomous Research
Got it. Thank you. Maybe a different topic, but it sounds like wealth management and group retirement is a business that you're looking to grow. Wondering if you could offer us a little more color on the size of that business today and your ambitions over the next few years and maybe is that an area where you'd be open to inorganic growth or multiples for assets? Just too rich right now.
Kevin Hogan — CEO, Corebridge Financial
Yeah, thanks, Wes. You know, look, we see a very attractive opportunity in the group retirement business. It's much more than a spread business. As you pointed out, our fee income of $190 million in the quarter is already larger than the spread income. I think what's important is to look at some of the sources of that future wealth management opportunity. Our advisory and brokerage assets were already at $16.8 billion, which is up 10% year-over-year. If you look at the fee income and the out-of-plan and the advisory and brokerage assets, that's already a big earnings base of $104 billion. It's up 3% year-over-year. The reality is that of the 1.9 million customers in this business, 1.6 million of them are still in plan only.
We have a tremendous future opportunity for that wealth management piece as the in-plan customers continue to work and as they reach their age of retirement. As we engage in household asset consolidation and have a chance to continue to serve them through the rest of their lives, we've started growing the advisor base again, supporting both the in-plan business as well as that wealth management business. We anticipate continuing to grow the advisor force. In terms of whether inorganic makes sense to accelerate the growth in that business, that's something that we would consider at the time consistent with the rest of our strategy. We see significant opportunities in the business, which is strategically very well positioned, irrespective.
Elias Habayeb — CFO, Corebridge Financial
Hey, Wes, just want to get back to your question to me. I was answering you in the context of kind of independent of the VA reinsurance transaction. As we've said before, with respect to the VA reinsurance transaction, we'd expect the substantial majority of the proceeds will be used for capital management. We'll go through our normal process for dividends with the regulators and the insurance companies. We'd expect the earliest that this would start being deployed will be in the fourth quarter.
Wes Carmichael — Analyst, Autonomous Research
Thanks a lot.
Ryan Krueger — Managing Director, KBW
Good morning. First question was on individual retirement sales.Can you talk a little bit more about what drove the strength this quarter? Was there anything particular about the environment that caused this? To what extent do you think this higher level of sales can be sustained going forward?
Kevin Hogan — CEO, Corebridge Financial
Yeah, thanks, Ryan. First of all, what I'd say is demand for the annuities remains robust across the board, and the conditions continue to be very attractive where the belly of the yield curve is, remains very supportive. Of course, the long term macro drivers are very powerful, whether that's the aging of the population, the recognition that people have to look after themselves, and a very supportive advisor community. We're very pleased with the conditions in the second quarter. We've determined the rationality of the competition based on our ability to achieve our margins on new business sales, and the second quarter conditions were attractive. Let's take a step back and kind of unpack it a little. We were very pleased with our index suite as well as our new RILA product, which has performed very well.
We continue to be disciplined in fixed annuities, which is really the most immediately sensitive of the businesses. In the second quarter, we did almost $500 million worth of our new RILA product. On top of that, we also had a high watermark in index sales. We haven't seen any signs of cannibalization, and that's a very positive trend. We've seen incremental sales growth in both RILA and index pretty consistently through the first and the second quarter. We don't know if these favorable conditions of the second quarter will continue. Historically, the tax planning season does prompt a little extra attention in the second quarter. The opportunities are there, the demand is there, and we have a broad capital management toolkit, including our new Bermuda strategy. We continue to focus on allocating the capital where the risk adjusted returns are the highest and the customer demands are the greatest.
In the second quarter we saw those opportunities in individual retirement, and we continue to see a very robust position for that business. We were able to grow the spread income sequentially for individual retirement and had very attractive net flows into the general account that will further contribute to the future earnings base of this business. We feel very well positioned in individual retirement. The conditions continue to be attractive. We expect to continue to grow the spread income from that business over time.
Ryan Krueger — Managing Director, KBW
Thank you. I had a question on spread income. I think base spread income was up about $5 million-$10 million sequentially this quarter. If we normalize for the one-time item in the first quarter, do you think that's a reasonable expectation now going forward in terms of the progression? Trajectory of spreading base spread income in the Individual Retirement business assuming no further rate cuts from the Fed?
Kevin Hogan — CEO, Corebridge Financial
As we pointed out, there's a bleed-in period of the resets when the Fed rate cuts occur over a couple of quarters. We're largely through that. It did have some impact on the second quarter looking ahead. We continue to see that the base spread income will continue to grow over time. As I pointed out, new business pricing is at our sort of medium-term return expectations. As you saw, where our new money is coming in, it's 50 bps over the roll-off. There might be some variability quarter-to-quarter, but the fundamental trend is that the general account reserves will continue to grow and that will drive growth in the base spread income.
Ryan Krueger — Managing Director, KBW
Thank you.
John Barnidge — Analyst, Piper Sandler
Morning. Thanks for the opportunity. With the Venerable transaction being the biggest corporate event since the IPO and stock price reaction, how does that make you think about additional liability optionality?
Kevin Hogan — CEO, Corebridge Financial
We're always looking for the opportunity to create shareholder value, increase shareholder value, and to optimize the portfolio. We focused on the variable annuity transaction significantly, but continue to evaluate other potential transactions. Any transaction needs to be accretive on a risk-adjusted basis to make sense for us, which means from both the pricing and structure perspective. We continue to evaluate options, and to the extent that there's anything to announce, we'll bring it forward.
John Barnidge — Analyst, Piper Sandler
Thanks for that answer. My follow-up, can you maybe talk a little bit about the institutional markets volume, good earnings emergence, but I know it can be somewhat episodic and PRT volumes low. Some have cited litigation, others have cited more competitive dynamics. Thank you.
Kevin Hogan — CEO, Corebridge Financial
Yeah, thanks, John. First of all, what I'd say is we're pleased to emerge as a more regular GIC issuer. We've had five quarters in a row, over $1 billion in issuance. This is consistent with what we talked about at the time of the IPO, becoming a more regular GIC issuer. We're doing it our way, incrementally and with discipline. In terms of pension risk transfer, the pipelines remain very strong in both the U.S. and the U.K. For years we've focused on full plan terminations. They're a little bit more complex, they take a little longer to develop, and so they are maybe a little bit more episodic. The pipelines continue to be strong. As Elias prepared remarks pointed out, plans are fully funded and companies are prepared to transact when there's external volatility. There is some impact on that.
We're confident in the position in the pipeline over time for both our U.S. and our U.K. income. We do expect that the spread income will continue to grow relative to reserves over time. It is not going to be linear quarter to quarter, and we feel very comfortable with both our position in the GIC business as well as what we're seeing in pension risk transfer. We haven't seen any significant impact of some of these external events.
Thomas Gallagher — Senior Managing Director, Evercore ISI
Good morning. On the Apollo call this morning, they mentioned that the headwind of the roll off of low cost liabilities should be behind them by the end of 2026. They're implying spreads would stabilize from that point going forward, approximately. Is that directionally similar to the way you think this is going to play out for Corebridge Financial? Or do you have a different timeline for how you see the spread compression playing out?
Elias Habayeb — CFO, Corebridge Financial
Hey Tom, it's Elias. Listen, we're focused on growing earnings and we expect to grow our spread income over time. Given the current macro and demographic dynamics in the business, in terms of the base spread in of itself, if you look at what we've been experiencing, it's been marginal compression. If you look at second quarter versus first quarter and adjust for the notable item, it was almost flat.
There could be more marginal compression given the dynamics of how much we've widened the spread on the in force relative to where new business is, but our focus is on growing earnings. How long this marginal compression will last, there are different variables that will influence timing. The key thing to us is where we're writing new business, it's meeting our pricing targets and we expect to continue to grow our spread income. Remember, spread income is just over 50% of our revenue sources. When you think about the other ways we make money, we're also optimistic about what the future holds for that. For example, fee income, I called it out, we were up 3%. If you exclude the variable annuity portfolio, we see that the Venerable on a year on year basis.
Thomas Gallagher — Senior Managing Director, Evercore ISI
That's helpful, Elias. Thanks. My follow-up just on the VA deal, I think the majority of that is cash proceeds, not freed up capital. Are you now sitting on most of the $2.1 billion at the holding company or is that cash consideration not at the holding company right now? Why would you have to wait until 4Q to begin to deploy that into larger buybacks?
Elias Habayeb — CFO, Corebridge Financial
The distributable proceeds are at the insurance company. It's the insurance companies that transacted directly with Venerable and since we've increased the distributable proceeds from the insurance companies, we need to go through the normal process we do every quarter with our regulators to distribute it and we'd expect to begin distributing it, the first batch by the end of the quarter so it's available for the fourth quarter.
Thomas Gallagher — Senior Managing Director, Evercore ISI
That makes sense.Thanks.
Cave Montazeri — Analyst, Deutsche Bank Securities
Thank you. First question on AI. Is life insurance your segment that is most advanced in terms of implementing GenAI, and if so, what opportunities do you see in individual and group retirement?
Kevin Hogan — CEO, Corebridge Financial
I mean, you know, we believe that artificial intelligence represents a significant opportunity for the industry. We're fortunate that through separation we've modernized our tools and our platforms, and we have a strong foundation in place to build off of. As you pointed out, we've actually been using advanced practices in particular in the life business for a number of years now. Our automated underwriting capability in life is actually transacting around 80% of our new decisions, and those are effectively instantaneous decisions. We feel very good about our capability there, but we see ongoing opportunities with respect to tools such as artificial intelligence and other advanced practices, including continuing to improve our operating leverage and our efficiency, enhancing the customer and the distribution partner experience, accelerating our software development life cycle.
We've worked hard to ensure that we have a sound governance process in place to ensure that we're understanding and managing the risks of the investments that we're making there. We see significant opportunities for the technology enhancements to benefit the business in various areas. Back to the life insurance portfolio. I think that our decision a number of years ago to narrow our product range and to move away from more of the interest sensitive products has benefited us very well. In addition to the automated underwriting, we've invested substantially in our digital platform for certain of the traditional products, which has served us very well. We feel very well positioned both in the life business as well as in our use of technology, and we expect to continue to benefit from that for years to come.
Cave Montazeri — Analyst, Deutsche Bank Securities
Thank you. My follow-up is going to link to this. In terms of your next phase of modernization, how far along do you think you are right now with regards to digitizing end to end processes in your insurance operations?
Kevin Hogan — CEO, Corebridge Financial
As I pointed out, through the separation process we've made significant progress. We've moved all of our administrative systems, our administrative platforms to one version of the cloud or another, and that gives us a great platform to build off of. We're working with some very capable partners in the journey of digitizing our various workflows. It depends business by business. In Life Insurance we have virtually a digital business now. Some of our other businesses are earlier in the journey, but we're confident in our ability to continue to improve our operating leverage over time.
Cave Montazeri — Analyst, Deutsche Bank Securities
Thank you.
Alex Scott — Analyst, Barclays
Hi. First one I have for you is on the rollout of the RILA product. Was interested if you could just give us an update on sort of where that stands. Obviously, there's been a lot of success in the sales. I was just more wondering where you're at in terms of getting the shelf space you want, rollout, the different states, etc.
Kevin Hogan — CEO, Corebridge Financial
Yeah, thanks Alex, appreciate it. Look, I really feel RILA is off to a great start in Individual Retirement. In the second quarter we had just shy of $500 million in sales. If you add Group Retirement on top of that, we got on top of $600 million. That brings us to over $1 billion since the launch of the product. We're definitely seeing strong market dynamics and significant demand for RILA as well as all the Individual Retirement products. We've launched with over 200 distribution partners so far, and we're in all but one of the states. We're seeing two dynamics. A lot of the sales are coming from our existing distribution sources. Distribution partners, going back to one of the reasons we introduced RILA, is most of our major distribution partners were asking for us to introduce our offering and to bring our historical creativity to it.
We work closely with our partners in developing the product and so far it's resonated really well. We're expanding our share of wallet with existing distribution partners. If you look at the second quarter sales, more than 25% of them are from advisors and distribution sources that are new to Corebridge. Not only is it enhancing our position with existing distribution, but we're attracting new sources of distribution with it. On top of the great success with RILA, as I think I mentioned a little while ago, we also had the strongest index annuity quarter that we've seen. We're not seeing any kind of cannibalization effect. We're seeing a multiplier effect and frankly, we expect that to continue.
Alex Scott — Analyst, Barclays
That's helpful. Second question I had is maybe just a broad one on new money yields, how they compare to the roll off yield or portfolio yield. Further, where are you finding good investment opportunities to fund the liabilities? Are there any shifts or allocations that you're leaning more into? Just trying to understand. On one hand, it's a high rate environment. On the other hand, spreads are quite tight and just want to better understand the way that you guys are approaching the environment. Thanks.
Elias Habayeb — CFO, Corebridge Financial
Hey Alex, it's Elias. Right now, new money versus roll off, it's a 50 basis point differential is what we saw in the second quarter. We have not changed our investment strategy or philosophy on that front, but we did, given supply in the market, end up with a higher allocation to public credit in the second quarter than some of the structured credit or some of the other stuff. We kind of view that as episodic and overall no change in our investment strategy. Remember, the other thing I would add is, listen, our investment strategy is liability driven, so it will evolve with what changes on the liability side of the house with where new business is coming from.
Alex Scott — Analyst, Barclays
Got it. Okay, thanks.
Suneet Kamath — Analyst, Jefferies
Just going back to the VA transaction, it sounds like maybe there was a bit of a change in terms of the accretion guidance. I believe on the VA call you talked about accretion in the second half of next year, and now sounds like. It's when the buybacks are complete. I just wanted to make sure that I got that right. Relatedly, over what time period would you expect to complete the needed buybacks to get to accretion?
Elias Habayeb — CFO, Corebridge Financial
Suneet to Elias, there's been no change from our end, so we expect the transaction to be EPS accretive once we fully deploy the capital that we intend to, and we expect to get there by the second half of 2026. That kind of factors in, you know, we're thinking that deploying the proceeds that are going to go towards capital management over kind of a similar period. We're mindful of market environment conditions as well and as well about how much can we really deploy in a quarter, taking that into consideration.
Suneet Kamath — Analyst, Jefferies
Okay. I guess for Kevin, on the annuity sales, you know, obviously we're seeing the industry at record levels. You guys are at record levels. Can you just talk to what is unique about your distribution? As I think about competitive advantages, products can be copied pretty easily, but distribution tends to have some staying power. Can you just talk about where you're different versus the industry?
Kevin Hogan — CEO, Corebridge Financial
We are very focused on having a broad product suite and having both an income-oriented solution and accumulation-oriented solution with each of our products. We work with our key distribution partners to truly understand their strategies, not just for the short term, but for the longer term, so that we can mobilize products or services to be able to support their strategies for their advisors as they evolve. As a result, depending upon what each of their strategies are, we can support them. We are not married to any particular product at any particular time and we maintain optionality in terms of how to be able to serve their advisors and the largest distribution partners. Obviously, their strategies are evolving and we are able to evolve with them over time. I think that ultimately is one of the things that gives us an advantage.
The other is that we work a lot to customize our products. If you look at the prior year's worth of sales, around 30% of our products have a proprietary feature that is unique to one of our major distribution partners. We have a broad product capability that we are able to support with respect to those various options. Of course, we spend a lot of time building the relationships at the wholesaler and advisor level. Ultimately, those relationships are what we continue to build on and expand. It is very strategic, it is very long term in orientation. It allows us to not necessarily have to position ourself one way or another, but we can evolve with the market cycles and maintain a stronger position with our partners. We have never focused on market share as a strategy.
I think market share is a good way of determining how well we are serving our distribution partners and their customers. We remain disciplined in pricing and they understand that part of our strategy as well.
Suneet Kamath — Analyst, Jefferies
Okay, thanks.
Elyse Greenspan — Managing Director, Equity Research, Wells Fargo
Hi, thanks. My first question is just on life insurance. I was hoping you could just provide a little bit more color on the favorable mortality that you guys saw in the quarter, and then, you know, is there any change in your go forward, you know, quarterly guide for the business?
Elias Habayeb — CFO, Corebridge Financial
Hey, Elyse, it's Elias. In terms of mortality in the quarter, we've found favorable frequency across the portfolio and favorable severity on our traditional life block. From a go forward, we continue to stick with our $110 million-$120 million per quarter as a run rate other than the first quarter, where we expect higher mortality given the winter season. The mortality this quarter was really driven by favorable frequency and severity. The traditional book.
Elyse Greenspan — Managing Director, Equity Research, Wells Fargo
Thanks. My second question was just if you could talk to the surrender of all you guys had guided to previously and how you guys expect that to play out?
Kevin Hogan — CEO, Corebridge Financial
Yeah, thanks, Elyse. As we said last quarter, we do expect higher levels of fixed annuity and index annuity volumes to be exiting surrender charge periods in the second half of this year. This is really kind of natural given the historical growth in the whole portfolio. It's not going to necessarily be consistent quarter to quarter because it does reflect when earlier large volumes of product were sold. As we've discussed before, in terms of surrender rates, we believe that those will reflect where the external conditions are, where yields and credit spreads are at any given point in time. The quotient of those two things, the rates and the volumes, is going to determine the level of surrenders.
We're prepared for surrenders as part of managing this business. As we've seen historically, when at times when the conditions suggest surrender rates are higher, new business is also higher. Since we're focusing on long term growth of the general account, ultimately, that's what we're focused on. We expect that irrespective of the fact that we have higher volumes exiting the surrender charge periods. It's a natural dynamic of the business and we expect that the general account and spread income will continue to grow over time.
Elyse Greenspan — Managing Director, Equity Research, Wells Fargo
Thank you.
Michael Ward — Analyst, UBS
Good morning. Just had one on Individual Retirement. Appreciate the color on the yield side. I was just curious about the editing rate, the cost of funds component. Should we think about that pickup sort of persisting, and just in the context of sales opportunities and maybe even suggestive of you guys just being squarely focused on spread, spread products now?
Kevin Hogan — CEO, Corebridge Financial
First, I'll address the last comment. We're not squarely focused only on spread products. Spread products are an important part of the opportunity right now. Actually, I feel really good about our performance over the last couple of years when the interest rate cycle has been extremely supportive of the spread business. If you go back a few years before that, we were successful with our spread businesses even in a lower rate environment. That's really a reflection of pricing discipline and also the relationships in the distribution area that allow us to participate through various market cycles.
In terms of the dynamic you're talking about in the portfolio with the creep in the cost of funds, that's more of a reflection of the fact that over the last couple of years we've widened spreads on the in force and the in force cost of funds are lower than current money cost of funds because of the years over which those were acquired. As the new business becomes a larger part of the overall in force portfolio and with some of the outflows coming in those lower cost of funds, that's where you see the marginal creep in the cost of funds. That's the difference there. The new business margins and the cost of funds on new business reflect where the current conditions are. We continue to find spreads very attractive.
Michael Ward — Analyst, UBS
Okay, thank you. Just post VA deal close and deployment of the proceeds, I was just wondering if you could help us think about the sources of your free cash flow and in terms of which businesses you expect to drive the majority. If you could quantify it at all, be helpful.
Elias Habayeb — CFO, Corebridge Financial
Hey, it's Elias on this one, Mike. We've got four businesses and the four businesses contribute to the cash generation from our insurance companies. They're all profitable in their own ways from that perspective. The VA business was one product of many that we offer. Going forward, we continue to be comfortable with the cash generation in the insurance companies and our ability to increase that over time as we are confident in our ability to deliver on the 60%-65% payout ratio and growing our EPS by 10%-15% per year on average.
Kevin Hogan — CEO, Corebridge Financial
Yeah, Mike. I'd also just kind of remind you that the variable annuity business has been in net outflows for eight years. To the extent that it had a financial contribution, we would have expected that financial contribution to decline over time. Actually, after the transaction, we're positioned more attractively for long term growth.
Michael Ward — Analyst, UBS
Thank you.
Joel Hurwitz — Analyst, Dowling & Partners
Hey, good morning. One on expenses, they looked very well managed in the quarter. Anything unusual or timing related that you would call out, or is that largely the Corebridge Forward benefits? And then I guess with that mostly earned through. Can you elaborate on further opportunities to manage your expense base?
Kevin Hogan — CEO, Corebridge Financial
Hey, Joel, we're doing a good job on managing our expenses. I think that's what's playing through our numbers. On a serious note, no, we've been very focused on improving our operating leverage. Corebridge Forward was version 1.0. We've largely gotten that done and that's earned in. We are on version 2.0 right now.
While we don't have a formal program like Corebridge Forward, we're pursuing a number of initiatives that improve our operating leverage, and you're seeing some of the benefits of that come through. We did have an early retirement program earlier the year where some of the savings we expect to drop to the bottom line and are dropping to the bottom line and some we will use to invest in additional capabilities for the future. We're pursuing digitization and modernization efforts in finance and actuarial, all of which should contribute to improving our operating leverage as well as making our processes more efficient and improve customer service along the way.
Joel Hurwitz — Analyst, Dowling & Partners
Okay, helpful. I didn't say you guys weren't doing a good job there. Just my follow up on group retirement. Any way you could size the two large plans, outflows that you had mentioned in your prepared remarks and any corresponding earnings impact from those outflows?
Elias Habayeb — CFO, Corebridge Financial
Yeah, Joel, Elias again. Happy to. It's roughly about $1.5 billion in outflows from the plans and the impact to earnings on a run rate basis less than $5 million a year.
Joel Hurwitz — Analyst, Dowling & Partners
Awesome. Thank you.
Wilma Burdis — Director Asset Management and Life Insurance, Raymond James
Hey, good morning. How do you think about the economic trade off or possibly expansion for fees for selling variable annuities versus bringing in spread based earnings on RILA products? Thanks.
Kevin Hogan — CEO, Corebridge Financial
We're trying to grow all of our sources of income. As I pointed out, our strategy is to deploy the capital where the risk adjusted returns are the most attractive and the customer needs are the greatest at any given point in time. With respect to the variable annuity product, that is a product that has not been among the more popular for a number of years, as I just reminded everyone, it's been in net outflows for eight years. We consider each of our sources of income equally valuable and we're looking for the opportunities to grow each of them according to where the opportunities are the greatest.
Elias Habayeb — CFO, Corebridge Financial
Yeah, and Wilma, I'll add to that, you know, the financial contribution from that VA product and Individual Retirement has been declining. If you look at our reported fee income, it's down 1% year-over-year. If you exclude the block that we ceded to Venerable, our fee income is actually growing. It's up 3%. When we look at this transaction, in addition to what Kevin said, you know, we're monetizing a book of business that's undervalued and has a decreasing financial contribution. It unlocks significant value for shareholders and it allows us to focus on the books of business where we see the growth opportunity. That's kind of the math we've done from our perspective internally. We got to sell this stream of earnings at a very attractive level to Venerable.
Wilma Burdis — Director Asset Management and Life Insurance, Raymond James
Okay, thank you. Could you give us a little bit more color on alt? The performance was good in 2Q. We think that that was possibly driven by year-end valuations coming in favorably. Could this persist in the second half of the year? Maybe you can give us a little bit more color. Thanks.
Elias Habayeb — CFO, Corebridge Financial
No, I'm happy. When we gave the guidance on the last earnings call, it was based on the information we knew at that time and they did come in much better. Two drivers behind what drove the better performance. One is, you know, the funds get their financial statement audits done as a firm on a calendar year basis and we get them in the second quarter. We had a more favorable true up this year than prior year. Separately, we do have investments in foreign funds. With the weakening of the U.S. Dollar, it contributed to a favorable result on a reported basis.
That being said, when we look at the second half of the year and we continue to believe these are great assets to invest in and they should deliver about an 8%-9% over the long term, we expect the second half of the year to be below the 8%-9% for two reasons. We expect continued weakness on valuations around real estate equity in the second half of the year. The uncertainty we saw in the second quarter and it's somewhat continuing, has slowed deal activity. Given the combination of those two drivers today, our outlook for the second half is while it might be positive, it'll be below the 8%-9%.
Wilma Burdis — Director Asset Management and Life Insurance, Raymond James
Thank you.
Kevin Hogan — CEO, Corebridge Financial
Yeah, thanks. Today I am going to end with a few closing remarks. As a result of our transformative transaction, the second quarter of 2025 is the most impactful of the 12 we've had since our IPO. Going forward, Corebridge has a fundamentally different financial profile. We're a simpler company with an improved risk profile and more opportunity for organic growth and attractive businesses. I want to thank the team that worked on the transaction, and I want to thank every Corebridge employee for executing with excellence on our strategic pillars. The value you are creating for our customers and shareholders alike is compelling. Thanks again to everyone who joined us for the call. Have a great day.