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AIG Rebrands Life & Retirement, Eyes IPO, Ropes in BlackRock
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American International Group, Inc. (AIG - Free Report) recently filed for an initial public offering (IPO) for the Life and Retirement business, in an attempt to make it a standalone company. AIG intends to rebrand the holding company of its life and retirement arm, SAFG Retirement Services, Inc., as Corebridge Financial, Inc.
The move is in line with AIG’s strategy of simplifying the business. The company initially announced its decision to separate the business in 2020. Last November, the company closed the sale of a 9.9% equity stake in the unit to Blackstone Inc. (BX - Free Report) for $2.2 billion. AIG intends to hold more than 50% stake in Corebridge Financial following the IPO, which is expected to be the largest one this year so far.
It has also announced a group of directors for the new entity, with Peter Zaffino taking the spot of the chairman of the company. The move is expected to enhance capital allocation and operating leverage for its core operations. It can help AIG to focus on de-levering and investing in business growth. In fact, cash proceeds received from Blackstone through the equity sale last year helped AIG in boosting liquidity.
Furthermore, AIG struck a partnership with BlackRock, Inc. (BLK - Free Report) , which is expected to manage $150 billion of its assets. BlackRock will likely manage $60 billion of AIG’s global investment portfolio and the $90-billion investment portfolio of Life and Retirement, which will become Corebridge Financial. While the new entity is reportedly valued at around $20 billion, it is expected to have $410 billion in assets under management. The partnership with BlackRock is expected to enable AIG to access its world class investment management technology named Aladdin.
Price Performance
American International’s shares have jumped 36.8% in the past year against a 7.5% decline of the industry.
The bottom line of Chicago, IL-based Old Republic International outpaced earnings estimates in each of the last four quarters, with the average being 38.7%. The consensus estimate for ORI’s 2022 earnings has been revised 3.7% upward in the past 60 days. Old Republic International witnessed one upward estimate revision and no movement in the opposite direction during this period. ORI has a VGM Score of B.
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AIG Rebrands Life & Retirement, Eyes IPO, Ropes in BlackRock
American International Group, Inc. (AIG - Free Report) recently filed for an initial public offering (IPO) for the Life and Retirement business, in an attempt to make it a standalone company. AIG intends to rebrand the holding company of its life and retirement arm, SAFG Retirement Services, Inc., as Corebridge Financial, Inc.
The move is in line with AIG’s strategy of simplifying the business. The company initially announced its decision to separate the business in 2020. Last November, the company closed the sale of a 9.9% equity stake in the unit to Blackstone Inc. (BX - Free Report) for $2.2 billion. AIG intends to hold more than 50% stake in Corebridge Financial following the IPO, which is expected to be the largest one this year so far.
It has also announced a group of directors for the new entity, with Peter Zaffino taking the spot of the chairman of the company. The move is expected to enhance capital allocation and operating leverage for its core operations. It can help AIG to focus on de-levering and investing in business growth. In fact, cash proceeds received from Blackstone through the equity sale last year helped AIG in boosting liquidity.
Furthermore, AIG struck a partnership with BlackRock, Inc. (BLK - Free Report) , which is expected to manage $150 billion of its assets. BlackRock will likely manage $60 billion of AIG’s global investment portfolio and the $90-billion investment portfolio of Life and Retirement, which will become Corebridge Financial. While the new entity is reportedly valued at around $20 billion, it is expected to have $410 billion in assets under management. The partnership with BlackRock is expected to enable AIG to access its world class investment management technology named Aladdin.
Price Performance
American International’s shares have jumped 36.8% in the past year against a 7.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Pick
American International currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the Insurance - Multiline space is Old Republic International Corporation (ORI - Free Report) , having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Chicago, IL-based Old Republic International outpaced earnings estimates in each of the last four quarters, with the average being 38.7%. The consensus estimate for ORI’s 2022 earnings has been revised 3.7% upward in the past 60 days. Old Republic International witnessed one upward estimate revision and no movement in the opposite direction during this period. ORI has a VGM Score of B.