American International Group Inc (NYSE: AIG) said on Thursday that it had agreed to sell nearly 120 million shares of its Corebridge common stock to Nippon Life Insurance Company for a total consideration of $3.8 billion.
The above mentioned shares comprise 20% of the outstanding shares of Corebridge.
AIG also said that it had agreed to maintain a 9.9% ownership stake in Corebridge for two years after the transaction closes.
The sale is expected to be finalized by the first quarter of 2025.
“Nippon Life is well known in the financial services industry for its leadership in the Japanese insurance market and is globally recognized for its strong performance and corporate reputation. We are pleased to have Nippon Life become a strategic partner to Corebridge and believe that they will add meaningful value as an investor,” Peter Zaffino, Chairman and CEO of AIG, said in a press release.
“I have significant respect for President Shimizu and admire his visionary leadership of Nippon Life, which is well known for its impressive capabilities and the high quality of services and benefits it provides to 15 million clients.”
Stock Performance
The shares of American International Group Inc (AIG) closed 0.68% ($0.54) lower at $78.90 in New York on Wednesday, as they reversed a gain from the previous market session.
The company’s total market cap now stands at $52.363 billion.
The shares of American International Group Inc (AIG) went up 7.13% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have risen 16.46% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 9 out of 15 surveyed investment analysts had rated American International Group Inc’s stock as “Buy”, while 6 – as “Hold”. The median price target on the stock stands at $85.00, which translates into a 7.73% upside compared to the closing price on Wednesday.
The high point of the analyst forecast range stands at $92.00.
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