(Reuters) -Corebridge Financial Inc reported a smaller-than-expected drop in its quarterly profit on Friday, supported by higher investment income from its base portfolio that more than offset the decline in private-equity returns.
The Houston, Texas-based life insurer's base portfolio comprises income earned from interest, dividends and foreclosed real estate.
Despite coming ahead of expectations, the company's total investment income fell 13% to $2.6 billion, a far cry from the previous year when the U.S. Federal Reserve was yet to start its rate-hike cycle.
For the three months ended Dec. 31, the company reported an operating profit of 88 cents per share, higher than Street estimate of 70 cents, according to Refinitiv IBES data.
Corebridge's largely upbeat results are in contrast to that of its largest shareholder American international Group, which reported a drop in quarterly profit on hits from the winter storm.
Corebridge went public last September, raising $1.68 billion in its initial public offering.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Sherry Jacob-Phillips)