AIG Reaches Key Milestone With Deconsolidation of Corebridge

Core Developments - American International Group, Inc. (AIG) has completed the deconsolidation of Corebridge Financial, Inc. (CRBG), relinquishing majority control over its board, marked by the resignation of Chris Schaper from Corebridge's board [1] - This separation allows AIG to focus on its core operations while Corebridge has established itself as a leading annuity provider [1] Financial Transactions - Following CRBG's successful IPO in 2022, AIG has been reducing its stake through secondary offerings, including a recent offering in May that sold 30 million shares at $29.20 per share, generating $872 million in net proceeds [2] - AIG has agreed to divest approximately 120 million shares of CRBG, representing 20% of Corebridge's total shares, to Nippon Life Insurance Company at a price of $31.47 per share, totaling $3.8 billion [2] - The transaction with Nippon Life is expected to close in the first quarter of 2025, with Corebridge managing over $390 billion in assets as of the end of the first quarter of 2024 [2] Stock Performance - AIG shares have increased by 35.2% over the past year, outperforming the industry growth of 19.5% [3] Investment Insights - AIG currently holds a Zacks Rank of 3 (Hold), while other companies in the finance sector, such as Brown & Brown, Inc. and Root, Inc., have better rankings of 2 (Buy) [4] - The consensus estimate for Brown & Brown's current-year earnings is $3.61 per share, reflecting a 28.5% year-over-year growth, with a history of beating earnings estimates [5] - Root, Inc. is projected to have a 53% year-over-year improvement in earnings, with significant revenue growth expected in 2024 [5]