AIG Launches Corebridge Life and Annuity Unit IPO

What You Need to Know

AIG began the offering on a day when the S&P 500 index was down 0.41%.
The company is offering 80 million of the 645 million total common shares and could sell 12 million more to the underwriters.
The IPO price could be between $21 and $24 per share.

American International Group today began a split from Corebridge Financial — its life and annuity business — that it began talking about in October 2020.

AIG offered 80 million of the 645 million available shares of Corebridge common stock, or about 12% of the shares, to the public through an initial public offering.

The company said it’s hoping to get a price of about $21 to $24 per share and raise about $1.9 billion. If the offering goes well, AIG could sell up to 12 million more shares to the offering underwriters and raise another $260 million.

The offering will turn Corebridge into a Houston-based life and annuity giant with about $368 billion in total assets as of June 30, $136 billion of individual annuities in force, and stock that trades on the New York Stock Exchange under the symbol “CRBG.”

What It Means

AIG is following a path blazed by MetLife, AXA and Prudential PLC of London and turning its life and annuity unit into a separate company, in response to investor concerns about life and annuity business volatility and benefits obligations.

For advisors and their clients, one effect may be that retail life and annuity products will get more attention from more narrowly focused companies than they would have received from multiline insurance giants.

Another effect may be that clients have to get used to the idea of a new company with a new identity backing life and annuity product guarantees.

The Offering

AIG had originally hoped to launch the Corebridge IPO in August. It postponed the offering because of concerns about investment market volatility.