Global insurer, American International Group (AIG) has met the requirements for the deconsolidation of its life & retirement unit, Corebridge Financial, for accounting purposes.
According to the announcement, the deconsolidation is a result of AIG’s decision to waive its right to majority representation on the Corebridge Financial Board of Directors and the resignation of Chris Schaper, Executive Vice President, Global Chief Underwriting Officer, AIG, from Corebridge Financial’s Board of Directors.
If you recall, AIG launched a secondary offering of Corebridge Financial common stock, priced at $29.20 per share, in late May. The insurer offered 30 million existing shares of common stock.
The second offering followed on from the insurers December announcement regarding the completion of the sale of 35 million Corebridge Financial shares in December 2023.
As well as this, in May, AIG also confirmed that it had reached an agreement with Nippon Life to sell approximately 120 million shares of its Corebridge common stock.
As it stands, AIG owns approximately 48.35% of Corebridge Financial’s common stock.
Peter Zaffino, Chairman and CEO of AIG, commented: “Today’s announcement about AIG’s deconsolidation of Corebridge Financial is a major achievement, which reflects the culmination of a series of well-planned and deliberate strategic decisions which will position AIG for the future as a leading global Property and Casualty insurer.
“I am very proud of our colleagues at AIG and Corebridge for all they contributed over the past several years, along with the focus and discipline with which they executed on the separation of the Life & Retirement business.
“Leading up to their successful IPO in 2022, we are very pleased that Corebridge Financial developed high-quality partnerships with Blackstone and BlackRock, and recently we announced Nippon Life’s intent to become an approximately 20% strategic investor, positioning Corebridge Financial for profitable long-term growth and industry leadership.”
Furthermore, it has been confirmed that Zaffino will continue as Chairman of the Corebridge Financial Board of Directors which has been reduced to 12 members.
