American International Group Inc (AIG) has completed the sale of 120 million shares of its subsidiary Corebridge Financial Inc to Nippon Life Insurance Company.
Valued at US$31.47 per share, the deal generated proceeds of approximately US$3.8 billion, in line with AIG’s prior announcement.
The sale reduces AIG’s stake in Corebridge by 21.6%, aligning with the insurer’s broader strategic objectives.
AIG enlisted Wachtell, Lipton, Rosen & Katz as legal counsel and JP Morgan Securities LLC as its financial advisor to facilitate the transaction.
In its financial report for the third quarter of 2024 (Q3 2024), AIG disclosed a decline in net income attributable to common shareholders, which the company attributed to accounting changes related to Corebridge.
AIG explained that the accounting change was initiated following the deconsolidation of Corebridge in June 2024.
Under the updated treatment, AIG categorises its remaining interest in Corebridge as an equity method investment, with the valuation based on Corebridge’s stock price. Dividends are recorded as net investment income, while stock price fluctuations are excluded from adjusted pre-tax income.
The insurer clarified that Corebridge’s historical performance is now reported as discontinued operations under US GAAP. As a result, this shift impacts comparisons with prior periods.
In the third quarter, AIG returned approximately US$1.8 billion to shareholders through buybacks and dividends, emphasizing its focus on capital allocation.
AIG chair and CEO Peter Zaffino described the company’s quarterly performance as reflective of its underwriting focus and strategic priorities.
“AIG delivered excellent third quarter financial results with strong profitability and growth across our businesses, highlighting the quality of the underwriting portfolio and our ability to deliver consistent earnings,” he said.
He noted that the company’s adjusted after-tax income per diluted share was US$1.23 for the third quarter, an 18% increase year-over-year, or 31% on a comparable basis, demonstrating AIG’s ability to consistently deliver underwriting excellence and capital management discipline.
Zaffino also highlighted growth within AIG’s global commercial business as a key driver of the results, noting that the segment contributed significantly to profitability during the period.
