Houston, Texas – As we approach the end of the trading week, analysts are closely monitoring the latest inflation figures. In focus today is Corebridge Financial, Inc. (NYSE:CRBG), a former division of American International Group, Inc. (AIG) that was spun off in 2022 as an IPO. Corebridge operates in the financial sector, providing retirement solutions and insurance products in the United States.

Since its IPO, Corebridge has seen a 37% increase in its share price. The company offers services through segments such as Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets. Diversified financial firms like Corebridge typically operate across various financial product lines to manage risk and seize growth opportunities.

Within the financial services sector, Corebridge is compared to peers like Equitable Holdings, Inc. (EQH), Prudential Financial, Inc. (PRU), and Canada’s Sun Life Financial Inc. (SLF). These companies also offer a mix of insurance, retirement, and financial services. The life insurance market is significant, with approximately 90 million American families relying on life insurance for financial security.

Corebridge’s revenue streams come from insurance/annuity premiums, fees, asset sales, and interest earned on their fixed-income portfolio. Despite a decline in net income in recent quarters, analysts project a 15% year-over-year growth in earnings per share for fiscal year-end Dec. 2024. The company’s future growth is expected to be driven by an increase in insurance and annuity policies sold, as well as growth in new clients.

Investors should consider risks such as the company’s debt-to-equity ratio and asset risk exposure. Corebridge’s debt levels have decreased in recent quarters, indicating a positive trend. The company’s asset portfolio consists mainly of corporate debt and commercial mortgage loans, with a focus on investment-grade securities.

Corebridge’s dividend yield is modestly above the sector average, although dividend growth has been limited. The company remains sustainable in paying dividends, with a focus on returning value to shareholders through buybacks and dividends. Despite a recent price dip following earnings results, Corebridge is seen as undervalued compared to its peers based on valuation metrics.

Overall, Corebridge presents a buying opportunity for investors looking at the potential growth in insurance and retirement clients, market expansion in the life insurance sector, and a stable dividend yield. The company’s strong liquidity and diverse product mix position it well for future growth, despite uncertainties surrounding interest rates and dividend growth in the long term.