NEW YORK - American International Group, Inc. (NYSE: NYSE:AIG) has entered into a definitive agreement to sell a 20% stake in Corebridge Financial, Inc. to Nippon Life Insurance Company. The transaction involves approximately 120 million shares of Corebridge common stock, priced at $31.47 per share, totaling an aggregate purchase price of $3.8 billion.
The sale, which is expected to close by the first quarter of 2025, is subject to customary closing conditions and regulatory approvals. As part of the agreement, AIG will retain a 9.9% ownership in Corebridge for a minimum of two years post-closing.
Peter Zaffino, Chairman and CEO of AIG, expressed confidence in the strategic partnership with Nippon Life, citing the Japanese insurer's leadership and reputation in the financial services industry. He acknowledged the capabilities of Nippon Life, which serves 15 million clients, and the leadership of its President Shimizu.
Nippon Life is recognized as Japan's leading private life insurer and is part of the Nippon Life Group, which operates in life insurance and asset management sectors globally. Corebridge Financial, with over $390 billion in assets under management and administration as of March 31, 2024, is a significant provider of retirement solutions and insurance products in the U.S.
Legal counsel for the transaction was provided by Wachtell, Lipton, Rosen & Katz, and J.P. Morgan Securities LLC served as the financial advisor to AIG.
This news is based on a press release statement from AIG.
InvestingPro Insights
As American International Group (AIG) takes a strategic step by selling a stake in Corebridge Financial to Nippon Life, investors and stakeholders may be keen to understand the financial health and market position of AIG. Here are some insights based on real-time data and InvestingPro Tips:
AIG's management has shown confidence in the company's value through aggressive share buybacks, which often signal a belief that the stock is undervalued. This aligns with the company's high shareholder yield, suggesting a commitment to returning value to shareholders. Furthermore, AIG has consistently maintained dividend payments for 12 consecutive years, with a notable dividend growth of 25.0% in the last twelve months as of Q1 2024. These factors combined reinforce AIG's dedication to shareholder returns.
On the financial front, AIG's market capitalization stands at a robust $52.36 billion, underlining its prominence in the insurance industry as highlighted in one of the InvestingPro Tips. Despite a slight revenue decline of 4.02% over the last twelve months as of Q1 2024, the company's quarterly revenue growth rate paints a brighter picture, with a 15.43% increase in Q1 2024. This could indicate a turnaround or a strategic shift that might be reflected in future financial statements.
Investors should note that AIG is trading near its 52-week high, with the price representing 97.62% of this peak. This could suggest market optimism about the company's trajectory, especially as analysts predict AIG to be profitable this year. For a comprehensive view of AIG's performance and additional InvestingPro Tips, interested parties can visit https://www.investing.com/pro/AIG. Currently, there are 9 more tips available, which could provide deeper insights into AIG's potential growth and risk factors.
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