Corebridge Financial, Inc.

Corporate governance · Ethics and compliance culture

Employee error and misconduct may be difficult to detect and prevent and may result in significant losses. There have been a number of cases involving fraud or other misconduct by employees in the financial services industry in recent years and we are also exposed to the risk that fraud or misconduct by our employees or agents of third parties performing services and activities for us could occur.

Reputation and brand · Esg environmental social governance performance

We may face increasing scrutiny and evolving expectations from investors, regulators, customers and other stakeholders regarding environmental, social and governance matters. There is increasing scrutiny and evolving expectations from investors, customers, regulators, and other stakeholders on ESG and sustainability practices and disclosures.

Geopolitical and trade · International conflicts and tensions

Adverse economic conditions may result from a variety of factors, including domestic and global economic and political developments, including elevated interest rates, plateauing or decreasing economic growth and business activity, recessions, or the increased likelihood of recessions, trade disputes with other countries, civil unrest, geopolitical tensions or military action.

Economic and market conditions · Consumer spending and confidence

Key ways in which we have in the past been, and could in the future be, negatively affected by economic conditions include: increases in policy withdrawals, lapses, surrenders and cancellations and other impacts from changes in policyholder behavior as compared to that assumed in pricing.

Economic and market conditions · Market volatility and financial crises

Equity market declines or market volatility have, and could continue to have, a material adverse effect on our investment returns, our business, results of operations, financial condition, capital and liquidity. For example, equity market declines or volatility have in the past and could in the future, among other things, decrease the asset value of our annuity, variable life and advisory and brokerage businesses.

Geopolitical and trade · Trade policies tariffs and sanctions

Adverse economic conditions may result from a variety of factors, including trade disputes with other countries (including the effect of sanctions and trade restrictions, such as tariffs and trade barriers imposed by the United States governments and any countermeasures imposed by other governments in response to such tariffs).

Natural and catastrophic events · Climate change and environmental impact

In addition, a portion of our investment portfolio is at risk from falling real estate values including real estate equity, residential and commercial mortgage loans on real estate, structured securities with underlying real estate collateral, and real estate investment trusts. General economic and business conditions in the real estate sector will influence the performance of these investments.

Market and investment · Trading and market making activities

We are exposed to risks from our use of derivative instruments to hedge market risks associated with our liabilities. Our risk management strategy seeks to mitigate the potential adverse effects of changes in capital markets, specifically changes in equity markets, foreign exchange rates and interest rates.

Market and investment · Market volatility and economic cycles

Volatility in credit spreads could have a material adverse effect on the valuation of our fixed income investments, our investment income and reserve calculations. We are exposed to credit spread risk primarily as a result of market price volatility and investment risk associated with the fluctuation in credit spreads.

Capital structure and performance · Credit rating and cost of capital

The IFS ratings of our insurance companies or our credit ratings could be downgraded. Downgrades of the IFS ratings of our insurance company subsidiaries, including related to changes in rating agency methodologies, could prevent these companies from selling, or make it more difficult for them to succeed in selling, products and services.

International and currency · Currency hedging and derivatives

The cost of our hedging program may be greater than anticipated if adverse market conditions were to limit the availability and increase the costs of the derivatives we intend to employ, and such costs may not be recovered in the pricing of the underlying products we offer.

Tax and financial reporting · Tax compliance and changes in tax law

Changes in U.S. federal income or other tax laws or the interpretation of tax laws could affect sales of our products and impact the taxation of our operations. For example, the Inflation Reduction Act of 2022 included a 15% corporate alternative minimum tax on adjusted financial statement income for corporations with average profits over $1 billion over a three-year period.

Industry regulation · Regulatory compliance and changes

Our business is heavily regulated. Our operations generally, and certain of our subsidiaries in particular, are subject to extensive and potentially conflicting laws, regulations, and regulatory guidance in the jurisdictions in which we operate.

Tax and financial reporting · Financial reporting and accounting standards

Differences between the change in fair value of the direct and ceded MRBs, which may not fully offset each other due to differences in measurement assumptions, and embedded derivatives, as well as associated statutory and tax liabilities, and the value of the related hedging portfolio may occur.

Core operations · Operational disruption and business continuity

We may be unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data. In the event of a natural disaster, unauthorized access, a terrorist attack, malware, cyber-attacks or other disruptions, our systems and networks may be inaccessible to our employees, customers or business partners for an extended period of time.

Human capital and workforce · Talent acquisition and retention

We may not be able to attract and retain the key employees and highly skilled people we need to support our business. Our success depends, in large part, on our ability to attract and retain talent, which may be difficult due to the intense competition in our industry for key employees with demonstrated ability.

Digital transformation and innovation · Artificial intelligence and automation

Our reliance on, and third party use of, AI exposes us to risks. Currently, AI plays a role in certain aspects of our business. In addition, our underwriting processes with respect to our Life Insurance segment use algorithms and predictive models. Our processes for the development, testing, use, oversight and ongoing monitoring of our AI use may not be effective.

Cybersecurity and data protection · Third party data security and vendors

Third parties we rely upon to provide certain business and administrative services may not perform as anticipated. If our third-party providers experience disruptions, cybersecurity incidents or data breaches, fail to meet applicable licensure requirements, do not integrate with our procedures or adapt to the systems associated with our facilities when providing services from our premises, do not perform as anticipated or in compliance with applicable laws and regulations, we may experience operational difficulties.

Technology infrastructure · Technology systems and infrastructure failure

System and network failures, outages, degraded performance and other disruptions have in the past compromised and in the future may compromise our ability to perform business functions in a timely manner, which could adversely impact our ability to conduct business and our relationships with our business partners and customers.

Information management · Technology vendor dependence

We have engaged Blackstone and BlackRock to serve as investment managers for certain asset classes. Due to the concentration of assets in our portfolios that are managed by each of Blackstone and BlackRock, if Blackstone or BlackRock are unable to effectively manage our portfolio, such inability could adversely affect our business, results of operations, financial condition and liquidity.