Corebridge Financial IPO: Know key details of AIG's retirement business

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 Corebridge Financial IPO: Know key details of AIG's retirement business
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Highlights

  • American Insurance Group (NYSE: AIG) announced to rebrand SAFG Retirement Services as Corebridge Financial once it becomes public.
  • The company has filed for IPO on March 28, 2022.
  • The size and price of the IPO are not yet finalized as per the filing. 

American Insurance Group (NYSE: AIG) announced its plans to rebrand SAFG Retirement Services as Corebridge Financial when the company becomes public via an initial public offering (IPO). 

In 2022, the IPOs took a backseat due to macroeconomic factors. Some companies bring their IPOs, while some delay or cancel their public debut plans.

AIG's decision to set its unit going public is likely to get attention. SAFG Retirement services are the parent company of AIG's Life and Retirement business and provide retirement solutions and insurance products.

After the IPO, AIG will continue to hold more than a 50% stake in Corebridge Financial.

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SAFG reportedly filed for an IPO in the US on Monday. However, the size and price are not yet finalized. 

The company has reportedly appointed J.P. Morgan Chase & Co., Morgan Stanley, and Piper Sandler for advising on the IPO. The shares of Corbridge are expected to be listed on the New York Stock Exchange (NYSE) and trade under the ticker symbol 'CRBG'.

Earlier on Monday, AIG announced a strategic partnership with BlackRock Inc., where the investment manager will handle around US$150 billion of the insurer's assets.

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Last year in November, AIG sold a 9.9% stake in the AIG's Life & Retirement business for US$2.2 billion in cash to Blackstone Group Inc., a private equity firm, to create a strategic asset management relationship for an initial US$50 billion from the life and retirement portfolio.

The company had announced its decision to separate its life insurance and retirement businesses from the property and casualty operations in 2020.

Its Life and Retirement business is one of the US's largest insurance and retirement solutions providers.

SAFG has reported a revenue of US$23.39 billion and net income of US$7.4 billion for the Fiscal year 2021, showing a significant improvement from the revenue of US$15.01 billion and net income of US$0.642 billion in the prior year. 

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Corebridge Financial IPO

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American International Group, Inc. (AIG): Key details

New York-based American International Group, Inc. (AIG) is one of the largest insurance and financial services firms globally. The company offers a wide range of insurance solutions to people in around 70 countries and jurisdictions. 

The company offers its services through subsidiaries and affiliates. 

Its Life & Retirement business includes member insurance companies such as The United States Life Insurance Company, American General Life Insurance Company, and The Variable Annuity Life Insurance Company (VALIC) and their affiliates.

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Bottom line:

Amid the market volatility, most of the awaited IPOs are on hold and companies are delaying going public. Chobani Inc., the yogurt maker, filed for IPO in November last year but is delaying plans for IPO due to current market conditions. The IPO lineup includes Reddit Inc., Cohesity Inc., Intel Corp. spinoff Mobileye etc., but their dates are yet not decided. 

However, in AIG's case, Peter Zaffino, Chairman & CEO of AIG, said that it represents its continued progress as its Life & Retirement business is ready to be a standalone company. 

Investors may wait for the IPO but should invest in any of them only after due analysis as the stock market is volatile and uncertain.

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