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July 15, 2021 at 10:47 AM
What You Need to Know
- Blackstone would get a 9.9% stake in the Life & Retirement business.
- The deal implies the business has a value of $20.2 billion.
- A separate affordable housing assets sale would raise $5.1 billion.
American International Group Inc. is stocking up on cash it can use to split off the AIG Life & Retirement business from the rest of the company and invest in the operations it’s keeping.
The New York-based insurer announced Wednesday that it has agreed to several deals with The Blackstone Group Inc.
Completing the deals could help AIG free up more than $7.3 billion in cash.
The Deals
AIG said it has agreed to sell a 9.9% equity stake in the AIG Life & Retirement business to Blackstone for $2.2 billion in cash. That agreement implies that the Life & Retirement business has a total value of $20.2 billion, according to a deal report that AIG filed with the Securities and Exchange Commission.
AIG agreed to let Blackstone manage $50 billion of the assets in the Life & Retirement business’s investment portfolio. The companies expect the amount of Life & Retirement assets in Blackstone’s care to increase to $92.5 billion over the next six years.
AIG hopes to complete the Life & Retirement deals with Blackstone by Sept. 30.
