American International Group Inc (AIG) and BlackRock Inc (BLK) said on Monday they had formed significant partnerships, where BlackRock would manage certain liquid fixed income and private placement assets.
Under the arrangements, BlackRock will manage up to $60 billion of the global AIG investment portfolio and up to $90 billion of its Life & Retirement investment portfolio.
Meanwhile, BlackRock’s Aladdin platform is to ensure investment management technology for both AIG and Life & Retirement.
“Partnering with an asset manager like BlackRock represents a continuation of our strategy to work with world class organizations as we deliver on excellence at AIG. BlackRock has an outstanding performance track record and world class risk analytics through its Aladdin platform. BlackRock’s global scale makes this a significant long-term value creation opportunity for our stakeholders. This is another important milestone as our momentum continues toward the separation of our Life & Retirement business and future state of AIG,” Peter Zaffino, Chairman and Chief Executive Officer of AIG, said in a press release.
“For Life & Retirement, the partnership with BlackRock creates both strategic and operating flexibility as we reposition asset management and prepare the business to be a standalone company,” the CEO added.
AIG shares closed lower for the second time in the past ten trading sessions in New York on Monday. The stock went down 1.16% ($0.75) to $63.73, after touching an intraday low at $63.33 and an intraday high at $64.16 respectively.
Shares of American International Group Inc have risen 12.08% so far in 2022 compared with a 4.00% loss for the benchmark index, S&P 500 (SPX).
In 2021, AIG’s stock went up 50.18%, thus, it again outperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 5 out of 8 surveyed investment analysts had rated American International Group’s stock as “Hold”, while 3 – as “Buy”. The median price target on the stock stands at $67.25.