AIG Finalizes Major Stock Sale to Nippon Life Insurance

In a significant move, American International Group Inc. has completed the sale of 120 million shares of Corebridge Financial to Nippon Life Insurance for $3.8 billion. This transaction could impact AIG's stock performance as it navigates its new ownership structure.

Date: 10-12-2024

AI Rating: 6

The report details a major stock transaction involving American International Group, Inc. (AIG) and Nippon Life Insurance Company. AIG has sold approximately 120 million shares of its subsidiary, Corebridge Financial Inc., for $31.47 per share. This translates to a total transaction value of $3.8 billion. This sale is noteworthy as it may influence AIG's future revenue capabilities and structure in the insurance market.

A key aspect of the deal is AIG's decision to retain a 9.9% ownership stake in Corebridge for at least two years following the transaction closure. This may indicate AIG's strategy to remain partially invested in Corebridge, which could help stabilize its financial metrics such as revenue growth and net income.

The transaction aligns with AIG's strategic direction and could positively affect its profit margins and overall financial health. However, the implications on earnings per share (EPS) and free cash flow (FCF) are not directly addressed in the report.

Stocks: AIG