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August 10, 2022

AIG eyes September window for life and retirement unit listing

Insurance major American International Group (AIG) has reportedly set September as the next window for the flotation of its life and retirement unit.

The insurer filed for the initial public offering (IPO) in March this year, but it was postponed due to unstable market conditions.

Upon listing, the unit is set to be renamed as Corebridge Financial with AIG looking to control over 50% stake in it.

Speaking to analysts and investors on a call, AIG chairman and CEO Peter Zaffino stated: “While completing the IPO is a significant priority for us and something we are laser-focused on, we believe this is an attractive business and did not want to execute a transaction that would be detrimental to stakeholders in the long run.” 

The listing was planned in the second quarter of this year, but the insurer deferred it citing high equity market volatility in May and June. 

Zaffino stated that the group is prepared to go ahead with the IPO subject to regulatory clearance and market conditions. 

“Deferring the IPO provided us with an opportunity to further accelerate progress on numerous separation initiatives and to solidify the capital structure of this business as a standalone company,” he added.

AIG first revealed its plans for the IPO in October 2020 and in preparation for the listing agreed to sell a 9.9% stake in the unit for $2.2bn to Blackstone in 2021.

In March this year, AIG and BlackRock reached an agreement, enabling the latter to manage up to $150bn of the insurer’s fixed-income and private-placement assets.

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