Dan Kitwood
American International Group (NYSE:AIG) completed the deconsolidation of Corebridge Financial (NYSE:CRBG) for accounting purposes after the company reduced its stake in its former life and retirement business to ~48.35%, AIG said on Monday.
AIG spun Corebridge (CRBG) off as a separate publicly traded company in 2022 through an initial public offering of 12.4% of the unit. In the latest of a series of secondary offerings of Corebridge (CRBG) shares since then, AIG sold 30M shares of CRBG stock on Thursday.
The deconsolidation is a result of AIG’s decision to waive its right to majority representation on the Corebridge Financial (CRBG) board and the resignation of Chris Schaper, executive vice president and global chief underwriting officer of AIG (AIG), from Corebridge’s board.
“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,” said AIG Chairman and CEO Peter Zaffino.
Zaffino will continue as chairman of Corebridge’s (CRBG) board, which has been reduced to 12 directors.
AIG (AIG) stock rose 0.6% and Corebridge’s (CRBG) stock gained 0.3% in Monday premarket trading.
Last month, AIG agreed to sell ~120M CRBG shares, representing 20% of Corebridge shares, to Nippon Life for $31.47 per share, or a total price of $3.8B. That deal is expected to close in Q1 2025.
