51 American International Group (AIG) announced on Thursday its decision to sell a 20% stake in Corebridge Financial to Japan’s Nippon Life Insurance for $3.8 billion. This move is part of AIG’s strategy to reduce its holdings in the life and retirement business, which it had previously spun off as a separate company in 2022 following pressure from activist investors. Under the agreement, AIG will sell 120 million shares of Corebridge at an average price of $31.47 each. While the insurer did not specify the intended use of the proceeds from the sale, it had previously mentioned the possibility of utilizing them for stock buybacks. Prior to this transaction, AIG held nearly a 53% stake in Corebridge, according to regulatory filings. Although Peter Zaffino, CEO of AIG, has committed to selling the company’s remaining ownership in Corebridge, AIG has agreed to retain a 9.9% stake for two years after the deal closes. Following the announcement, Corebridge shares surged by 13% to reach a record high, while AIG’s stock climbed by 1.3%. This sale is expected to strengthen Nippon Life’s presence in the U.S. market. With 15 million clients, Nippon Life is one of the largest life insurers in Japan, operating in various other countries including Australia, India, Myanmar, China, Thailand, and Indonesia. You Might Be Interested In Saudi Council of Economic and Development Affairs reviews diversification progress at meeting US Judge Rules HCA Healthcare Must Face Antitrust Case Regarding Health Costs Bath & Body Works Teams Up with Netflix to Bring Fragrance to “Bridgerton” Fans Air New Zealand Collaborates with Elon Musk’s Starlink to Transform Domestic Travel with In-Flight Internet What is shadow banking? Unpacking the risks for China Mutual Insights Survey: Financial Future Concerns