New York insurer AIG to sell life & retirement unit stake to Blackstone, IPO

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New York insurer AIG to sell life & retirement unit stake to Blackstone, IPO

American International Group Inc., the New York City-headquartered American multinational insurer, had issued a statement later this week saying that the insurance corporation having operational in more than 80 countries, had been mulling an initial offering to divest part of its life and retirement business, while Blackstone Group Inc., the world’s largest alternative asset manager, had agreed to purchase a sizable stake in the insurer’s life and retirement arm, sources familiar with the subject-matter had unveiled on condition of anonymity given the scale of sensitivity of the issue.

Apart from that, the American multinational insurer employing over 49,600 people across the globe as of June 30, 2021, alongside Blackstone Group Inc. had told in a joint statement that the alternative asset manager with $649 billion worth of assets under management, had agreed to lay off $2.2 billion for a 9.9 per cent stake in AIG’s life and retirement business, eventually skyrocketing the shares’ prices of AIG as much as 4.70 per cent to $48.06 apiece on Thursday’s market closure after soaring roughly 3 per cent in pre-market trading.

AIG to sell life & retirement unit stakes to Blackstone

In point of fact, latest AIG move to divest a 9.9 per cent stake at its life and retirement business came against the backdrop of a media topline that had revealed the American insurer was pursuing a potential buyer for 19.9 per cent stake in the business, however, the AIG Chief Peter Zaffino had told in May that the company might capitalize on an initial offering to sell off the stakes.

Nonetheless, following the latest Blackstone deal, sources were quoted saying that an IPO plan had still been on the cards to divest the remaining. On top of that, as the latest AIG move to shrug off stakes at its life & retirement businesses came forth as part of an effort to split the unit from property & casualty operations, AIG Chief Zaffino said in a statement, “The (deal) provides AIG with flexibility as we continue to work to separate Life & Retirement from AIG, and results in significant new capital for AIG to deploy to support our capital management priorities.