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AIG Global Funding -- Moody’s assigns Baa2 issuer rating to Corebridge Financial, Inc., affirms life insurance credit ratings (A2 insurance financial strength); outlook to stable

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Rating Action:

Moody’s assigns Baa2 issuer rating to Corebridge

Financial, Inc., affirms life insurance credit ratings (A2 insurance

financial strength); outlook to stable

29 March 2022

New York, March 29, 2022 – Moody’s Investors Service has assigned a Baa2 long-term issuer rating

to Corebridge Financial, Inc. (Corebridge), formerly SAFG Retirement Services, Inc. (SAFG), with

a stable outlook. Moody’s also affirmed the A2 insurance financial strength ratings of Corebridge’s

life insurance subsidiaries, as well as other affiliated ratings, and returned the outlook to stable from

negative (see complete rating list, below). Corebridge is an intermediate holding company that is

currently majority owned by American International Group, Inc. (NYSE: AIG; senior unsecured at

Baa2, stable outlook). Corebridge will serve as the public holding company for the life insurance

group, as it proceeds towards an initial public offering (IPO) in its separation from the AIG property-

casualty operation announced by AIG in October 2020.
RATINGS RATIONALE
Moody's said the Corebridge issuer rating and the life company credit rating affirmations were

based on the Corebridge life and retirement group’s leading positions in a number of US individual

annuity and retirement product markets, their broad distribution network, and solid profitability. The

rating agency believes the group’s stand-alone credit profile is consistent with similarly rated peers,

with anticipated consolidated GAAP adjusted leverage in the 20%-30% range and good earnings

coverage. Capital adequacy is also strong, as measured by the group’s consolidated 2021 NAIC

Risk Based Capital (RBC) ratio of 380% (447% “fleet, ”excluding AGC Life Insurance Company).
According to AIG, the former SAFG and its life and retirement operations were rebranded as

Corebridge Financial, Inc. on March 28, 2022, concurrent with its filing of Form S-1 Registration

Statement with the Securities and Exchange Commission to sell shares if its common stock to the

public.
These strengths are mitigated by significant interest rate risk and spread compression/

disintermediation risks arising from the group’s core fixed indexed annuity (FIA) and fixed annuity

businesses; by a significant exposure to equity market and hedging risks from its individual variable

annuity (VA) liabilities and FIAs; and by a concentration in structured assets holdings.
Commenting on the outlook change back to stable from negative, the rating agency said it

contemplates an incremental increase in asset risk and illiquidity, and greater potential incremental

earnings volatility over time, although within its current expectations for the Corebridge group’s

ratings.
In November 2021, the former SAFG, now Corebridge, entered into an investment arrangement

for Blackstone to manage up to $92.5 billion of the life insurance group’s invested assets over

the next six years, including the first $50 billion as of year-end 2021. Blackstone, which is also a

9.9% owner of Corebridge, will re-invest the assets in structured assets, private credit and real

estate investments, etc., which are asset classes in which it has expertise. Moody’s expects the

reinvestment to add potential incremental yield, as well as incrementally more earnings and capital

volatility as compared with publicly traded bonds.

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FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The following factors could result in an upgrade of the Corebridge and the life and retirement

subsidiaries’ ratings: (i) appropriate capitalization and financial leverage for the business (e.g.,

RBC not less than 400% (company action level) on a consolidated basis including AGC Life), (ii)

profitability, as measured by return on capital, of over 7% on a consistent basis, (iii) no material

degradation of invested asset quality or liquidity beyond Moody’s expectations, and (iv) total

leverage of less than 30% (excluding AOCI, except for a modco adjustment).
The following factors could lead to a downgrade of Corebridge and the life and retirement

subsidiaries’ ratings: (i) a material increase in higher-risk, and/or illiquid assets beyond Moody’s

expectations; (ii) a deterioration in franchise value and profitability, (ii) a decline in consolidated RBC

below 350% including AGC Life, (iii) total leverage above 35% (excluding AOCI, except for a modco

adjustment).
RATING ACTIONS
Moody’s has assigned the following ratings:
Corebridge Financial, Inc. (formerly SAFG Retirement Services, Inc.):
Long-term issuer rating: Baa2;
The rating outlook for this entity is stable.
Moody's has affirmed the following ratings:
American General Life Insurance Company:
Insurance Financial Strength rating at A2;
United States Life Ins. Co. in the City of N.Y.:
Insurance Financial Strength rating at A2;
Variable Annuity Life Insurance Company:
Insurance Financial Strength rating at A2;
AIG Global Funding:
Senior secured debt rating at A2;
Backed senior secured MTN program rating at (P)A2.
AIG SunAmerica Global Financing X:
Backed senior secured debt rating at A2;
ASIF II:
Backed senior secured debt rating at A2;
Backed senior secured MTN program rating at (P)A2.
ASIF III (Jersey) Limited:
Backed senior secured debt rating at A2;
Backed senior secured MTN program rating at (P)A2;

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The rating outlook for these entities is revised to stable from negative.
Moody’s has also corrected the issuer of CUSIPs 866930AB6, 86703QBJ9 and 86703QBN0 to

SunAmerica Inc., which originally issued the debt.
The principal methodology used in these ratings was Life Insurers Methodology published in

September 2021 and available at

https://www.moodys.com/researchdocumentcontentpage.aspx?

docid=PBC_1254133

. Alternatively, please see the Rating Methodologies page on

www.moodys.com for a copy of this methodology.
Corebridge Financial, Inc. is a life insurance group headquartered in Houston, Texas, which focuses

on providing retirement and insurance product solutions in the US. At December 31, 2021, it

reported total consolidated GAAP assets of approximately $416 billion and consolidated GAAP

shareholders' equity of almost $29 billion.
REGULATORY DISCLOSURES
For further specification of Moody’s key rating assumptions and sensitivity analysis, see

the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure

form. Moody’s Rating Symbols and Definitions can be found at:

https://www.moodys.com/

researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement

provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or

note of the same series, category/class of debt, security or pursuant to a program for which the

ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.

For ratings issued on a support provider, this announcement provides certain regulatory disclosures

in relation to the credit rating action on the support provider and in relation to each particular credit

rating action for securities that derive their credit ratings from the support provider's credit rating.

For provisional ratings, this announcement provides certain regulatory disclosures in relation to the

provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent

to the final issuance of the debt, in each case where the transaction structure and terms have not

changed prior to the assignment of the definitive rating in a manner that would have affected the

rating. For further information please see the ratings tab on the issuer/entity page for the respective

issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies)

of this credit rating action, and whose ratings may change as a result of this credit rating action, the

associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach

exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated

entity, Disclosure from rated entity.
The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no

amendment resulting from that disclosure.
These ratings are solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited

Credit Ratings available on its website www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the

related rating outlook or rating review.

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Moody’s general principles for assessing environmental, social and governance (ESG) risks in

our credit analysis can be found at

http://www.moodys.com/researchdocumentcontentpage.aspx?

docid=PBC_1288235.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s

affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt

am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No

1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the

Moody’s office that issued the credit rating is available on www.moodys.com.
The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s

affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada

Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK.

Further information on the UK endorsement status and on the Moody’s office that issued the credit

rating is available on www.moodys.com.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the

Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory

disclosures for each credit rating.
Laura Bazer

VP-Sr Credit Officer

Financial Institutions Group

Moody's Investors Service, Inc.

250 Greenwich Street

New York, NY 10007

U.S.A.

JOURNALISTS: 1 212 553 0376

Client Service: 1 212 553 1653
Scott Robinson, CFA

Associate Managing Director

Financial Institutions Group

JOURNALISTS: 1 212 553 0376

Client Service: 1 212 553 1653
Releasing Office:

Moody's Investors Service, Inc.

250 Greenwich Street

New York, NY 10007

U.S.A.

JOURNALISTS: 1 212 553 0376

Client Service: 1 212 553 1653

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