AIG Sells 74.75M Corebridge Shares in Secondary Offering
American International Group, Inc. AIG announced the close of the secondary offering of shares held in its Corebridge Financial, Inc. CRBG subsidiary. It has sold 74.75 million shares in the offering.
AIG was initially seeking to sell 65 million shares in the offering. Also, the underwriters fully exercised their option to buy 9.75 million more shares. The offering price was $16.25 per share. Gross proceeds from the transaction, prior to the deductions, commissions and costs were around $1.2 billion to American International.
Earlier, AIG had 648 million CRBG shares outstanding. The secondary offering generated proceeds marginally below the $1.3 billion expected by Bloomberg. AIG remains the majority shareholder in Corebridge. Earlier, The Insurer predicted that the secondary offering will trim AIG’s position in Corebridge by 10% to about 67%.
Last September, AIG closed the IPO of CRBG, the holding company for its Life and Retirement business. The aggregate gross proceeds from the initial offering before deductions to AIG were $1.7 billion. It sold 80 million shares in the IPO. With the spin-off, the company has focused more on de-levering and investing in business growth.
Corebridge recently approved a special dividend of 62 cents per share, or around $400 million in total. The special dividend will be paid out along with its regular quarterly dividend of 23 cents per share. As of Mar 31, 2023, it had over $365 billion in assets under management and administration.
Price Performance
American International shares have gained 8.9% in the past year against the 2% fall in the industry.
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Zacks Rank & Other Key Picks
AIG currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader finance space are Radian Group Inc. RDN and Lemonade, Inc. LMND, carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Radian Group’s 2023 earnings has improved 6.5% over the past 60 days. During this time, RDN has witnessed two upward estimate revisions against none in the opposite direction.
The Zacks Consensus Estimate for Lemonade’s 2023 earnings suggests 15.9% year-over-year growth. Also, the consensus mark for LMND’s 2023 revenues implies a 53.6% year-over-year surge.
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