Key Takeaways
American International Group Inc. will generate about $710 million in net proceeds from the sale of its remaining stake in Corebridge Financial Inc., completing a five-year effort to separate from its life and retirement business.
"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," Peter Zaffino, Chairman and Chief Executive Officer of AIG, said in a statement. "We have transformed AIG into a more focused, leading, global property & casualty insurance company."
The insurer agreed to sell approximately 25 million shares of Corebridge common stock, with the sale expected to close on May 7, according to a company announcement. AIG carved out the unit through an initial public offering in 2022 and has been systematically reducing its holdings since.
The sale solidifies AIG’s transformation into a dedicated property and casualty insurer, a strategic goal Zaffino has pursued since taking leadership. On the company's first-quarter earnings call, executives noted the primary use of proceeds from selling down the Corebridge stake would be for additional share repurchases, returning capital to shareholders.
The move follows a strong first quarter for AIG, where the company reported an 18% year-over-year increase in General Insurance net premiums written and a calendar year combined ratio of 87.3%, an 850 basis point improvement. The performance of the now-core business provides a solid foundation as the company moves past its complex conglomerate structure. Incoming CEO Eric Andersen, set to take over on June 1, has affirmed his commitment to the strategy and delivering on the company's 2025 Investor Day financial targets.
The completion of the Corebridge sale provides AIG with fresh capital to execute its share buyback plans and sharpens its focus on the global property and casualty market. Investors will watch how the company deploys the proceeds and whether the streamlined operations can sustain the strong underwriting performance shown in recent quarters.
This article is for informational purposes only and does not constitute investment advice.
