American International Group (AIG) announced its intention to sell a 20% stake in Corebridge Financial to Japan's Nippon Life Insurance for $3.8 billion, a move that aligns with AIG's objective to lower its ownership in the life and retirement sector. This decision comes after AIG separated the life and retirement business into a separate entity in 2022 in response to pressure from activist investors. The agreement entails the sale of 120 million shares at an average price of $31.47 per share, with the purpose of potentially utilizing the proceeds for stock repurchases in the future.
Prior to this transaction, AIG held a majority stake of nearly 53% in Corebridge, according to regulatory filings. A commitment from AIG's CEO, Peter Zaffino, pledges to divest the remaining stake post-deal closure, with a provision to retain a 9.9% interest for two years. Notably, the sale is expected to benefit Nippon Life by expanding its footprint in the U.S. market, as the company, a major life insurer in Japan with 15 million customers, seeks to leverage this strategic investment opportunity. J.P. Morgan Securities provided advisory services to AIG during the negotiation process, with the deal anticipated to be finalized by the first quarter of 2025.