Nippon Life to buy part of AIG’s Corebridge stake for US$3.8 billion

Nippon Life to buy part of AIG’s Corebridge stake for US$3.8 billion | Insurance Business Asia

Insurance News

Nippon Life to buy part of AIG’s Corebridge stake for US$3.8 billion

Insurance giant will retain 9.9% shareholding

Insurance News

By
Terry Gangcuangco

American International Group (AIG) has agreed to sell around 120 million shares of its Corebridge common stock to Nippon Life Insurance Company for US$3.8 billion.

The stake being sold by AIG represents 20% of Corebridge’s outstanding shares. Following the transaction, AIG will retain a 9.9% shareholding in Corebridge for at least two years post-closing.

Peter Zaffino (pictured), AIG’s chair and chief executive, expressed confidence in the deal, stating: “Nippon Life is well known in the financial services industry for its leadership in the Japanese insurance market and is globally recognized for its strong performance and corporate reputation.

“We are pleased to have Nippon Life become a strategic partner to Corebridge and believe that they will add meaningful value as an investor.

“I have significant respect for President [Hiroshi] Shimizu and admire his visionary leadership of Nippon Life, which is well known for its impressive capabilities and the high quality of services and benefits it provides to 15 million clients.”

The sale is expected to be finalized by the first quarter of 2025, pending customary closing conditions and regulatory approvals. Wachtell, Lipton, Rosen & Katz provided legal counsel for AIG, while J.P. Morgan Securities served as the financial advisor.

At the time, Zaffino said: “AIG began 2024 with very strong momentum in delivering on our strategic and operational progress while achieving exceptional financial results, reflecting the foundational capabilities we have cultivated over the last several years.

“In addition to outstanding profitability, this quarter was highlighted by the significant capital management actions we completed, placing AIG in a position of strength ahead of Corebridge Financial’s deconsolidation from AIG.

“While reducing our ownership stake in Corebridge remains a top priority in 2024, we continue to diligently execute on our capital management strategy.”

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