AIG to sell 20% stake in insurer Corebridge to Nippon Life

NIPPON Life Insurance has agreed to acquire a 20 per cent stake in Corebridge Financial for about US$3.8 billion in cash, marking its biggest-ever deal as it seeks a foothold in the US.

American International Group (AIG), which owns more than 50 per cent of Corebridge, will sell approximately 120 million shares for US$31.47 each to Nippon Life under the planned deal, the US insurer said in a statement on Thursday (May 16). AIG said it agreed to maintain 9.9 per cent of the business for two years after the closing, which is expected by the first quarter of 2025.

Nippon Life will have a strategic partnership with both firms, Japan’s largest insurer said in a separate statement. The transaction is subject to regulatory approval.

The deal marks a major step toward growth in the US for Nippon Life, which said it has been looking for acquisition opportunities at home and overseas. For Houston-based Corebridge, it gains a new anchor investor. AIG spun off its life and retirement business in a 2022 IPO and has since further pared its interest. 

Corebridge is one of the largest providers of retirement solutions and insurance products in the US and has maintained a strong presence, especially in the individual retirement market, according to the statement. 

AIG chief executive officer Peter Zaffino said this month when the firm reported results that reducing its stake in Corebridge remains a top priority this year. BLOOMBERG