Mar 29, 2022 - Economy & Business

AIG preps mega-IPO for services spinout

A suitcase with a trend line going up

Illustration: Sarah Grillo/Axios

AIG (NYSE: AIG) filed IPO papers for its life insurance and retirement services arm, which will be renamed Corebridge Financial from SAFG Retirement Services.

Why it matters: This would be a giant float in any context, but it looms even larger against the backdrop of today's listless IPO market. SAFG reports $28.9 billion of equity value at the end of 2021, a premium that Blackstone paid for a 9.9% stake earlier in the year, and Renaissance Capital estimates that the IPO could raise $3 billion.

The bottom line: "AIG first announced the decision to separate its life insurance and retirement businesses from its property and casualty operations in 2020, years after activist investors targeted the company for a break-up. The insurer, which began to retool its underwriting in 2017 to make its core business more profitable said last year the process was largely complete and it was now pivoting to focus on growth." — Reuters

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