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AIG Optimizes Portfolio With $718M CRBG Secondary Offering

American International Group, Inc. AIG recently disclosed the pricing details for another Corebridge Financial, Inc.’s CRBG secondary offering, valuing its common stock at $20.50 per share. AIG has proposed 35 million of CRBG’s existing shares, amounting to around $718 million in gross proceeds.

AIG is selling from a total of around 630 million outstanding common shares of Corebridge and the offering is set to conclude on Dec 5, 2023. AIG will retain a majority stake in Corebridge after the offering, and the net proceeds from the sale will be directed to the global insurance organization.

Additionally, AIG has offered the underwriter a 30-day option to acquire an extra 5.25 million shares in CRBG, a retirement solutions and insurance provider. For the offering, it has J.P. Morgan serving as the underwriter. The move allows AIG to secure funds from the offering while maintaining majority ownership in CRBG.

AIG remains steadfast in its operational streamlining strategy, divesting non-core businesses and products to sharpen its focus on core insurance operations. It closed the IPO of Corebridge, the holding company of its Life and Retirement unit, in September 2022. The latest move, occurring within a month of a prior sale of 50 million CRBG shares raising more than $1 billion, aligns with AIG's ongoing efforts to enhance liquidity and optimize its portfolio.

By divesting non-essential assets, AIG aims to fortify its core insurance capabilities and position itself for sustained growth in the dynamic insurance landscape. Prior to this transaction, AIG held 365.4 million shares of Corebridge.

Price Performance

American International shares have gained 5.2% in the past year against the 2.1% decline of the industry.

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Zacks Investment Research

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Zacks Rank & Key Picks

AIG currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Assurant, Inc. AIZ and Brown & Brown, Inc. BRO. While Assurant sports a Zacks Rank #1 (Strong Buy), Brown & Brown carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Assurant’s current-year earnings indicates a 30.8% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 42.4%. Also, the consensus mark for AIZ’s 2023 revenues suggests 5.4% year-over-year growth.

The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $2.76 per share, which indicates 21.1% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 12.3%.

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American International Group, Inc. (AIG) : Free Stock Analysis Report

Assurant, Inc. (AIZ) : Free Stock Analysis Report

Brown & Brown, Inc. (BRO) : Free Stock Analysis Report

Corebridge Financial, Inc. (CRBG) : Free Stock Analysis Report

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