We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AIG Taps CVC to Put Its Investment Engine in a Higher Gear
Read MoreHide Full Article
Key Takeaways
AIG formed a long-term partnership with CVC, targeting private credit and private equity secondaries.
AIG plans to deploy nearly $3.5B, including $1.5B as a cornerstone investor in CVC's secondaries platform.
The strategy uses tailored mandates and SMAs to boost diversification, yield potential and returns.
American International Group, Inc. (AIG - Free Report) entered a strategic investment partnership with CVC, a major global private markets firm. Under this arrangement, AIG plans to allocate a meaningful portion of its investment capital to strategies managed by CVC. The focus is primarily on credit-related investments and private equity secondaries. Rather than making one-off investments, AIG is setting up long-term, structured mandates that allow CVC to manage capital on its behalf across multiple strategies.
AIG is expected to deploy almost $3.5 billion over time through CVC-managed vehicles, with initial allocations expected to begin in 2026. A key element of the deal is AIG becoming a cornerstone investor in CVC’s private equity secondaries evergreen platform, contributing around $1.5 billion.
AIG will also use separately managed accounts (SMAs) to gain exposure to diversified private and liquid credit assets, tailored specifically to its needs, allocating around $2 billion. The partnership seems designed to be scalable and flexible, allowing allocations to grow as performance and market conditions evolve.
This move highlights how large insurers like AIG are increasingly shifting away from traditional fixed-income investments toward alternative assets in search of higher, more stable long-term returns. It also signals confidence in private credit and secondaries as attractive asset classes in a higher-rate but uncertain economic environment.
For CVC, which boasts an AUM of €201 billion, securing a long-term partnership with a global insurer enhances its credibility and strengthens its position in institutional capital markets. The deal provides sizable, sticky capital, generating recurring fees and creating opportunities to scale its investment platforms.
For AIG, the partnership will likely improve portfolio diversification, enhance yield potential and support long-term returns. Its trailing 12-month return on equity stands at 9.09%, below the industry average of 15.14%. Customized investment structures will also help manage risk more efficiently.
AIG’s Zacks Rank & Estimates
AIG currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings is pegged at $7.02 per share, which witnessed two upward estimate revisions in the past week against no movement in the opposite direction. It indicates 41.8% year over year growth. However, the consensus mark for revenues is pegged at $27.25 billion, signaling a 16.9% decline.
AIG beat earnings estimates in all the past four quarters, with an average surprise of 15%.
American International Group, Inc. Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for Assurant’s current-year earnings is pegged at $19.48 per share, predicting a 7.1% year-over-year increase. It witnessed two upward estimate revisions in the past 30 days against no movement in the opposite direction. AIZ beat earnings estimates in all the past four quarters, with an average surprise of 22.7%.
The Zacks Consensus Estimate for CNO Financial’s current-year earnings is pegged at $4.14 per share, which indicates 4.3% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past 60 days. CNO beat earnings estimates in each of the past four quarters, with an average surprise of 6.5%.
The consensus mark for Principal Financial’s current-year earnings is pegged at $8.30 per share, indicating a 19.1% year-over-year improvement. It has witnessed one upward estimate revision against none in the opposite direction during the past 30 days. Furthermore, the consensus estimate for PFG’s 2025 revenues is pegged at $15.17 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AIG Taps CVC to Put Its Investment Engine in a Higher Gear
Key Takeaways
American International Group, Inc. (AIG - Free Report) entered a strategic investment partnership with CVC, a major global private markets firm. Under this arrangement, AIG plans to allocate a meaningful portion of its investment capital to strategies managed by CVC. The focus is primarily on credit-related investments and private equity secondaries. Rather than making one-off investments, AIG is setting up long-term, structured mandates that allow CVC to manage capital on its behalf across multiple strategies.
AIG is expected to deploy almost $3.5 billion over time through CVC-managed vehicles, with initial allocations expected to begin in 2026. A key element of the deal is AIG becoming a cornerstone investor in CVC’s private equity secondaries evergreen platform, contributing around $1.5 billion.
AIG will also use separately managed accounts (SMAs) to gain exposure to diversified private and liquid credit assets, tailored specifically to its needs, allocating around $2 billion. The partnership seems designed to be scalable and flexible, allowing allocations to grow as performance and market conditions evolve.
This move highlights how large insurers like AIG are increasingly shifting away from traditional fixed-income investments toward alternative assets in search of higher, more stable long-term returns. It also signals confidence in private credit and secondaries as attractive asset classes in a higher-rate but uncertain economic environment.
For CVC, which boasts an AUM of €201 billion, securing a long-term partnership with a global insurer enhances its credibility and strengthens its position in institutional capital markets. The deal provides sizable, sticky capital, generating recurring fees and creating opportunities to scale its investment platforms.
For AIG, the partnership will likely improve portfolio diversification, enhance yield potential and support long-term returns. Its trailing 12-month return on equity stands at 9.09%, below the industry average of 15.14%. Customized investment structures will also help manage risk more efficiently.
AIG’s Zacks Rank & Estimates
AIG currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings is pegged at $7.02 per share, which witnessed two upward estimate revisions in the past week against no movement in the opposite direction. It indicates 41.8% year over year growth. However, the consensus mark for revenues is pegged at $27.25 billion, signaling a 16.9% decline.
AIG beat earnings estimates in all the past four quarters, with an average surprise of 15%.
American International Group, Inc. Price, Consensus and EPS Surprise
American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote
Key Picks to Consider
Investors interested in the broader Finance space may look at some better-ranked players like Assurant, Inc. (AIZ - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Principal Financial Group, Inc. (PFG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Assurant’s current-year earnings is pegged at $19.48 per share, predicting a 7.1% year-over-year increase. It witnessed two upward estimate revisions in the past 30 days against no movement in the opposite direction. AIZ beat earnings estimates in all the past four quarters, with an average surprise of 22.7%.
The Zacks Consensus Estimate for CNO Financial’s current-year earnings is pegged at $4.14 per share, which indicates 4.3% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past 60 days. CNO beat earnings estimates in each of the past four quarters, with an average surprise of 6.5%.
The consensus mark for Principal Financial’s current-year earnings is pegged at $8.30 per share, indicating a 19.1% year-over-year improvement. It has witnessed one upward estimate revision against none in the opposite direction during the past 30 days. Furthermore, the consensus estimate for PFG’s 2025 revenues is pegged at $15.17 billion.