Merger momentum lifts Corebridge, Equitable stock well ahead of broader market

Since Corebridge Financial Inc. and Equitable Holdings Inc. first announced plans to merge March 26, shares of both companies have sharply outperformed the broader market and their insurance peers.

The two insurers said on July 30 that each has received overwhelming shareholder approval for the deal, which is pending regulatory approval and other customary conditions, but should close by the end of 2026. The merger is set to reshape the US life insurance market in a way not seen in the past two decades.

Corebridge stock rose 40.7% between the March 26 deal announcement and the close of business Aug. 6, while Equitable shares rose 36.5%. Meanwhile, the S&P 500 grew 16.9%, and the S&P 500 US Insurance Index saw gains of 15.9%.

In an Aug. 4 note, Jefferies analyst Suneet Kamath said the benefits of the merger are "becoming visible."

"Longer-term, we feel that the combined Corebridge/Equitable will be the best-positioned US life insurer to benefit from our annuity growth thesis," Kamath said. "We continue to argue that retail annuities is the area in US Life with the greatest disconnect between growth potential and valuation."

Q2 earnings results

Equitable and Corebridge both released second-quarter 2026 earnings this week.

Corebridge reported a second-quarter net loss of $16 million, or a loss of 4 cents per share, up from a net loss of $660 million, or $1.20 per share, a year ago. Second-quarter adjusted after-tax operating income available to common shareholders stood at $512 million, or $1.12 per common share, a decrease from $672 million, or $1.22 per common share, in the second quarter of 2025.

During Corebridge's second-quarter earnings call, CEO Marc Constantini spoke about the insurer's expectations surrounding pension risk transfer activity, which he anticipates will accelerate in the second half of 2026.

"Nothing in this market has changed," Costantini said. "Pension plans remain overfunded, the appetite for derisking solutions remains strong, and we expect the double-digit reserve growth we've achieved since 2021 to continue."

Constantini added that the pending merger with Equitable should enable the combined entity to pursue larger pension risk transfer deals and also increase the size of the insurer's life insurance business. The CEO added that joining with Equitable will give the combined firm access to Equitable's variable universal life product.

Equitable booked a second-quarter net loss attributable to holdings of $453 million, or a loss of $1.68 per common share, compared to a net loss of $349 million, or a loss of $1.21 per common share, in the second quarter of 2025. Non-GAAP operating earnings in the second quarter of 2026 stood at $488 million, or $1.70 per common share, versus $352 million, or $1.10 per common share, in the second quarter of 2025.

Jefferies' Kamath characterized Equitable's second-quarter results as "decent" but said that he anticipated the stock to trade more on merger updates as well as indications that the insurer can resume share buybacks.

Speaking on Equitable's second-quarter call, Senior EVP and CFO Robin Raju said there are "no restrictions on share repurchases outside of standard blackout periods" since shareholders have now approved the merger. He called the return on buybacks "compelling."

"Overall, we feel good about the growth trends across our businesses and remain confident in our cash generation and earnings per share growth guidance for 2026," Raju said.

Equitable and Corebridge did not immediately respond to requests for comment.