November 26, 2022

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American International Group, Inc. (NYSE:AIG), BlackRock, Inc. (NYSE:BLK) – AIG Files $20B IPO For Its Life Insurance & Asset Management Business

American International Group Inc (NYSE: AIG) has filed for an initial public offering of its life and asset management business, reportedly by far the largest to file for a US IPO this year publicly. 

The life and asset management business is known as SAFG, but AIG said it would be rebranded as Corebridge Financial Inc after the IPO. It expects to own more than 50% of Corebridge Financial following its IPO, and it will have approximately $410 billion in assets under management.

The S-1 registration statement filed on Monday did not give a value for Corebridge. Financial Times, citing people familiar with the process, mentioned the value of approximately $20 billion, consistent with the $2.2 billion Blackstone paid in November for a nearly 10% stake in SAFG. 

AIG has been undergoing restructuring since its $185 billion taxpayer rescue during the 2008 financial crisis, selling off assets in areas such as aircraft leasing and consumer finance. 

Recently, AIG also announced its plans to hand over management of up to $150 billion of fixed income and private placement assets to BlackRock Inc (NYSE: BLK). About $90 billion of the assets will become part of Corebridge’s portfolio, and $60 billion is within AIG’s core business.

The AIG-BlackRock arrangement will gradually be phased and subject to regulatory approvals. Both Corebridge and the rest of AIG will use BlackRock’s investment management technology, Aladdin.

Price Action: AIG shares closed 0.22% higher at $63.87 during after-hours trading on Monday.

Photo by eflon via Flickr

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