The previously announced transaction between American International Group, Inc. (AIG) and Blackstone, which sees the latter acquire a 9.9% equity stake in the former’s Life & Retirement business, has now closed.
It was announced back in July that the pair had reached an agreement over the sale of a nearly 10% stake in the operation for $2.2 billion in an all cash transaction.
At the same time, AIG and Blackstone revealed a new long-term strategic asset management relationship, which has also closed today.
Through this arrangement, Blackstone will manage an initial $50 billion of Life & Retirement’s existing investment portfolio, with that amount rising to $92.5 billion over the next six years.
Now the transactions have completed, it’s understood that Jon Gray, President and Chief Operating Officer (COO) of investment firm Blackstone, will join the Life & Retirement Board of Directors.
In August, global insurer and reinsurer AIG announced two senior promotions within Life & Retirement, as both Bryan Pinsky and Tim Heslin took on new roles.