AIG and BlackRock are going into partnership based on the management by the latter of certain liquid fixed income and private placement assets.
A statement from the companies says that the arrangements contemplate BlackRock managing up to $60bn of the global AIG investment portfolio and up to $90bn of the Life & Retirement investment portfolio. Additionally, BlackRock’s Aladdin platform will provide investment management technology for both AIG and Life & Retirement.
Peter Zaffino, chairman and CEO of AIG, said: ““Partnering with an asset manager like BlackRock represents a continuation of our strategy to work with world class organizations as we deliver on excellence at AIG.”
He added: “BlackRock has an outstanding performance track record and world class risk analytics through its Aladdin platform. BlackRock’s global scale makes this a significant long-term value creation opportunity for our stakeholders. This is another important milestone as our momentum continues toward the separation of our Life & Retirement business and future state of AIG.”
The arrangements with BlackRock will be implemented in phases across AIG’s global operations, subject to customary onboarding and implementation requirements and any required regulatory approvals.
Rob Kapito, president of BlackRock, said: “BlackRock is honoured to have been selected to serve AIG as a strategic partner. We look forward to leveraging our investment expertise, scale, and technology capabilities for the benefit of all of AIG’s stakeholders. I have enormous respect and admiration for AIG, and I am confident in the long-term value BlackRock will deliver as we embark on this journey together.”