AIG to sell remaining shares in Corebridge Financial

American International Group announced Tuesday that it will sell about 25 million shares of common stock of Corebridge Financial, representing its remaining stake in the company.

The sale, which is expected to close on May 7, will result in net proceeds to AIG of approximately $710 million.

Peter Zaffino, chairman and CEO, AIG, said, “Today’s sale of our remaining stake in Corebridge marks the culmination of a five-year separation and a significant milestone in the successful execution of our strategy to exit the life and retirement business. We have transformed AIG into a more focused, leading, global property & casualty insurance company. This final step reflects years of disciplined planning, commitment, execution, and perseverance. Since Corebridge’s IPO in 2022, we have worked to ensure the company had the capabilities to operate effectively as a stand-alone organization and is well positioned for long-term success."

AIG has reshaped its relationship with Corebridge Financial in recent years, transitioning from full ownership to a more independent, but still closely linked, partnership. In March, Corebridge entered into a blockbuster merger with Equitable Holdings.

Corebridge was created as part of AIG’s broader effort to streamline operations and focus on its core property-casualty insurance business. The company was formed from AIG’s life insurance, retirement and institutional markets businesses — segments that differ from AIG’s primary risk-focused operations.

In 2022, AIG took Corebridge public through an initial public offering, marking a significant step toward separating the businesses. While Corebridge began trading as an independent company, AIG retained a majority stake following the IPO, signaling an ongoing financial and strategic connection.

Since then, AIG has gradually reduced its ownership in Corebridge through secondary share offerings, part of a longer-term plan to fully exit the business. Even as it trims its stake, AIG has continued to benefit from Corebridge’s earnings and capital returns.

Meanwhile, the two companies maintain operational ties, including reinsurance agreements and shared services arrangements, reflecting their history as a single organization. These agreements were designed to unwind over time as Corebridge builds out its standalone capabilities.

Corebridge, for its part, has focused on expanding its retirement solutions, life insurance offerings and asset management capabilities, positioning itself as a major player in long-term savings and income products. Its business model emphasizes generating fee-based and spread-based earnings from annuities, pensions and institutional mandates.

AIG’s separation strategy has been driven by a desire to simplify its structure and improve financial performance following years of restructuring after the financial crisis. By divesting its life and retirement arm, AIG aims to deliver more consistent underwriting results and return capital to shareholders.

This report compiled by InsuranceNewsNet staff.