AIG pushes life unit IPO to September, says market ‘not conducive’

Global re/insurance conglomerate  American International Group (AIG) will take a second stab at floating its recently spun-off life & retirement unit Corebridge on markets come September.

“The next window will be in September,” Zaffino said of outlook following the decision to suspend the IPO during the second quarter market mayhem. Q2 market conditions “were not conducive.”

“While completing the IPO is a significant priority for us and something we are laser focused on, we believe this is an attractive business and did not want to execute a transaction that would be detrimental to stakeholders in the long-run,” AIG’s CEO Peter Zaffino (pictured) said.

The transition of AIG’s life and retirement business into the new self-standing entity will not be slowed by the delay. “In the mean-time, throughout the summer, we continue to make significant progress to position the business for long-term success.”

The target for a cost slashing plan has been upped by a third or more to $400 million for a three-year horizon, with a majority of the savings to be achieved over the next 24 months. The shift to new operating models and partner platforms in investments will continue apace.

AIG hived the new unit off from its P&C operations with an eye to putting a minority stake on the market.

Preparations have included a deal with Blackstone to manage up to $92.5 billion of the life insurance group's invested assets over the next six years, including the first $50 billion as of year-end 2021. Blackstone is also a 9.9% owner of Corebridge.

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