AIG takes final step to complete Corebridge separation

American International Group (AIG) waived its right to majority representation on the Corebridge Financial board of directors, a move that completes the long-anticipated separation of the two companies.

As part of the final moves, Chris Schaper, executive vice president, global chief underwriting officer for AIG, resigned from Corebridge Financial director seat.

AIG planned and executed the separation of Corebridge into a standalone company for several years. The results leave a top-selling annuity company in Corebridge, with AIG free to focus on its positioning as a global leader in property and casualty insurance.

“Today’s announcement about AIG’s deconsolidation of Corebridge Financial is a major achievement, which reflects the culmination of a series of well-planned and deliberate strategic decisions which will position AIG for the future as a leading global Property and Casualty insurer,” said Peter Zaffino, chairman and CEO of AIG.

Zaffino will continue as chairman of Corebridge’s board of directors, which has been reduced to 12 members.

Last month, AIG sold a 20% stake in Corebridge Financial to Japan's largest life insurer, Nippon Life Insurance, for $3.8 billion, or about $31.47 per share. The market reacted positively to the Nippon deal, pushing AIG shares up immediately after the deal was announced. The stock is up 10.4% this year.

After spinning off Corebridge through a successful IPO in 2022, AIG reduced its holdings in Corebridge Financial through a series of transactions. AIG currently owns approximately 48.35% of Corebridge Financial’s common stock.

The deconsolidation of Corebridge Financial is the latest in a series of carefully orchestrated strategic initiatives for AIG over the last several years, including the sales of the company’s Crop Risk Services and Validus Re businesses.

Meanwhile, Corebridge took flight under the leadership of CEO Kevin Hogan. Corebridge signed deals with Blackstone and BlackRock to manage certain annuity assets. The insurer finished 2023 third in LIMRA's sales rankings with $23.6 billion in annuity sales. It moved to second in Q1 with $6.3 billion in sales.

This report compiled by InsuranceNewsNet staff.