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A screen capture showing Corebridge executives on the NYSE Opening Bell podium at the New York Stock Exchange, on Sept. 15, 2022.

Life Health > Annuities > Variable Annuities

Corebridge, AIG's Annuity Arm, Completes $1.7B IPO

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What You Need to Know

  • Corebridge ended the first half of the year with $368 billion in assets.
  • The price of its shares rose 0.48%, to $20.73, on the first day of trading.
  • Its stock began trading as the S&P 500 index was falling 1.13%.

Investors today gave Corebridge Financial — AIG’s life insurance and annuity arm — a lukewarm welcome as its shares began trading on the New York Stock Exchange, under the stock symbol “CRBG.”

Corebridge shares opened at $20.50 per share. The price increased to a high of $21.05 before closing at $20.73.

The S&P 500 stock index fell 1.13%, to 3,901.35, because of investor concerns about the strength of tech stocks, and worries that strong labor market and consumer spending data could lead the Federal Reserve Board to continue to increase interest rates.

What It Means

For advisors who have retail clients with some of the many life insurance policies and annuities written by AIG subsidiaries, the main direct impact will be a flurry of questions about, “What’s Corebridge?”

For investors, the economic conditions that cast a shadow over the Corebridge stock trading launch could lead to long-term gains.

Market turmoil could increase customer interest in the kinds of income and benefits guarantees that Corebridge products can offer.

Higher interest rates could hurt some Corebridge operations but help others, by increasing the difference between what the company can earn on its own bond portfolio and the rates it pays customers.

The Company

Corebridge incorporates the operations of companies such as SunAmerica, American General and VALIC.

It ended the first half of the year with $368 billion in assets.

It generated $6.5 billion in net income on $16 billion in revenue in the first half of the year.

The Offering

AIG has raised a total of $1.7 billion by selling 80 million Corebridge shares, or a 12% stake, for $21 per share through an initial public offering process that began a week ago.

AIG could raise about $240 million more in the next 30 days by selling Corebridge stock to the financial services companies that managed the IPO.

The History

Investors have been skeptical about life and annuity issuers in recent years, because of concerns about the impact of low interest rates and tougher accounting rules.

AIG is just one of many big insurers that have started complete or partial life and annuity business spinoffs.

The list of other major spinoffs includes the process that separated Brighthouse Financial from MetLife, the Equitable separation from AXA, and the Jackson separation from Prudential PLC of London.

Pictured: Corebridge Financial executives headed to the New York Stock Exchange to celebrate the start of trading of Corebridge shares, under the symbol “CRBG,” with an official NYSE Opening Bell ceremony.


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