AIG inks major partnership with BlackRock for $150bn of its assets

American International Group (AIG) has entered into a strategic partnership with  BlackRock for its $60 billion of its global investment portfolio and up to $90 billion of the Life & Retirement investment portfolio.

BlackRock will manage certain liquid fixed income and private placement assets, and provide AIG access to its asset management capabilities and investment management technology Aladdin.

The arrangements with BlackRock will be implemented in phases across AIG’s global operations, subject to customary onboarding and implementation requirements and any required regulatory approvals.

“Partnering with an asset manager like BlackRock represents a continuation of our strategy to work with world class organizations as we deliver on excellence at AIG,” said Peter Zaffino (pictured), chairman and chief executive officer of AIG.

“ BlackRock has an outstanding performance track record and world class risk analytics through its Aladdin platform. BlackRock’s global scale makes this a significant long-term value creation opportunity for our stakeholders. This is another important milestone as our momentum continues toward the separation of our Life & Retirement business and future state of AIG.”

Zaffino added: “For Life & Retirement, the partnership with BlackRock creates both strategic and operating flexibility as we reposition asset management and prepare the business to be a standalone company.”

Rob Kapito, president of BlackRock, commented: “ BlackRock is honored to have been selected to serve AIG as a strategic partner. We look forward to leveraging our investment expertise, scale, and technology capabilities for the benefit of all of AIG’s stakeholders. I have enormous respect and admiration for AIG, and I am confident in the long-term value BlackRock will deliver as we embark on this journey together.”

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