AIG Sells 20% Stake in Corebridge Financial to Nippon Life Insurance for $3.8 Billion
American International Group (AIG) announced on Thursday that it will sell a 20% stake in Corebridge Financial to Japan's Nippon Life Insurance for $3.8 billion. This move is part of AIG's strategy to reduce its holdings in the life and retirement business, which it separated into a distinct company in 2022 following pressure from investors.
AIG will sell 120 million shares at an average price of $31.47 each. The company did not disclose how it will use the proceeds from the sale, but it has previously indicated that it might use them for stock buybacks.
Prior to this transaction, AIG held a nearly 53% stake in Corebridge. AIG CEO Peter Zaffino has committed to selling the company's remaining ownership in Corebridge, but the firm has agreed to maintain a 9.9% stake for two years after the deal closes.
This sale will allow Nippon Life to expand its presence in the U.S. market. With 15 million clients, Nippon Life is one of the largest life insurers in Japan and also operates in Australia, India, Myanmar, China, Thailand, and Indonesia.
J.P. Morgan Securities advised AIG on the deal, which is expected to be finalized by the first quarter of 2025.