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AIG Revives Life Unit Corebridge’s $1.9 Billion US IPO

·2 min read

(Bloomberg) -- American International Group Inc. said it will move ahead with plans to raise as much as $1.9 billion selling shares in its life and retirement unit.

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The insurer will offer 80 million shares in Corebridge Financial Inc. at $21 to $24 apiece in a proposed initial public offering, according to a statement Tuesday. The listing was slated for earlier this year before it was delayed amid a market downturn.

The offering is the first deal to launch after Labor Day, the US holiday considered a milestone for the restarting of the IPO season. Once complete, it would also end the longest IPO drought in over two decades, according to data compiled by PricewaterhouseCoopers.

It would also be the biggest US IPO this year topping private equity firm TPG Inc.’s $1.1 billion listing in January, Bloomberg’s data showed.

At the top of the marketed range, Corebridge would have a market value of more than $15 billion, based on the outstanding shares listed in its filing with the US Securities and Exchange Commission. AIG would control almost 78% of the company’s shares after the listing, with Blackstone Inc. holding about 10%. Corebridge’s shares are expected to be listed on the New York Stock Exchange under the symbol CRBG.

AIG’s Strategy

All proceeds of the Corebridge transaction will go to AIG and the new company isn’t raising new capital, according to the statement. The firm had more than $350 billion in assets under management and administration as of end of June.

The IPO represents the culmination of a long-standing effort engineered by AIG Chief Executive Officer Peter Zaffino and his predecessor Brian Duperreault to focus on core businesses and simplify operations.

Other insurers have taken similar steps. MetLife Inc. sold its property and casualty business to Zurich Insurance Group AG in 2021. Prudential Financial Inc. sold its full-service retirement arm earlier this year.

AIG ranked 13th in terms of premiums for the sale of life insurance, annuities, and related products in the US last year, according to data from the National Association of Insurance Commissioners. It was 12th in property and casualty premiums for the same period.

JPMorgan Chase & Co., Morgan Stanley and Piper Sandler Cos. are leading the share sale. Bank of America Corp., Citigroup Inc. and Goldman Sachs Group Inc. are also listed as advisers.

(Updates with IPO market, Blackstone, AIG strategy, underwriters starting in third paragraph.)

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