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AIG's Corebridge Financial to Buy Back $150M of Common Stock

Zacks Equity Research
·2-min read

American International Group, Inc. AIG subsidiary, Corebridge Financial, Inc. CRBG, has recently disclosed a share repurchase agreement with AIG and an affiliate of Blackstone Inc. BX. Under this agreement, CRBG is set to repurchase $150 million worth of its common stock from AIG and BX.

AIG is slated to have around $135 million worth of Corebridge common shares repurchased, while Blackstone will see $15 million worth of stock bought back. The completion of the repurchase program is set to be on Dec 18, 2023, with the purchase price for the stocks locked at $21.75 per share.

This strategic move is anticipated to reduce AIG's stake in Corebridge, unlocking capital in the process. Despite the transaction, AIG will retain its majority shareholder status in CRBG. As of the end of the third quarter, the subsidiary boasted $360 billion in assets under management and administration.

In September 2022, AIG closed the IPO of Corebridge, the holding company for its Life and Retirement business, to focus more on de-levering and investing in core business growth. Additionally, earlier this month, it completed a secondary offering of CRBG shares, resulting in net proceeds of $712 million after deductions.

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AIG is poised to further streamline its portfolio, emphasizing concentration on the General Insurance unit to minimize portfolio volatility and enhance cash liquidity. In line with this strategy, in May 2023, the company entered into a definitive agreement to divest Validus Re, AlphaCat and the Talbot Treaty reinsurance unit to RenaissanceRe Holdings.

Price Performance

AIG shares have gained 6.9% in the past year compared with the 4.7% rise in the industry.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & A Key Pick

AIG currently has a Zacks Rank #3 (Hold). A better-ranked stock in the broader Finance space is Assurant, Inc. AIZ, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Assurant’s current-year earnings indicates a 30.8% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 42.4%. Also, the consensus mark for AIZ’s 2023 revenues suggests 5.4% year-over-year growth.

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Blackstone Inc. (BX) : Free Stock Analysis Report

American International Group, Inc. (AIG) : Free Stock Analysis Report

Assurant, Inc. (AIZ) : Free Stock Analysis Report

Corebridge Financial, Inc. (CRBG) : Free Stock Analysis Report

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Zacks Investment Research