American International Group, Inc. AIG continues to streamline its portfolio and intensify its focus on its General Insurance business through secondary offerings of Corebridge Financial, Inc. CRBG common stock. AIG is offering another 30 million of CRBG’s existing shares, amounting to around $876 million in gross proceeds.
AIG disclosed the pricing details for the secondary offering, valuing CRBG common stock at $29.20 per share. This will enable the company to secure more funds while maintaining majority ownership in CRBG. Notably, AIG closed the IPO of Corebridge, the holding company of its Life and Retirement unit, in September 2022.
The parent company is selling from a total of around 608 million outstanding common shares of Corebridge, and the offering is set to conclude on Jun 3, 2024, which has Morgan Stanley & Co. serving as the underwriter. Additionally, AIG has offered the underwriter a 30-day option to acquire an extra 4.5 million shares in CRBG, a retirement solutions and insurance provider.
Earlier this month, AIG reached an agreement to sell approximately 120 million common shares of CRBG, representing a 20% ownership stake, to Nippon Life Insurance Company. The transaction is valued at $3.8 billion, with each share priced at $31.47. As part of the agreement, AIG will retain a 9.9% ownership stake in CRBG for two years after the transaction is completed. The sale is expected to be finalized by the first quarter of 2025.
Price Performance
AIG shares have gained 15.5% in the year-to-date period compared with the 7.9% growth of the industry.
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Zacks Rank & Key Picks
AIG currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Brown & Brown, Inc. BRO and Root, Inc. ROOT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.61 per share, which indicates 28.5% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.9%.
The consensus mark for ROOT’s current-year earnings indicates a 35.6% year-over-year improvement. It beat earnings estimates in all the past four quarters, with an average surprise of 34.1%. Furthermore, the consensus estimate for Root’s 2024 revenues suggests 125.3% year-over-year growth.
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Free: See Our Top Stock and 4 Runners Up >>American International Group, Inc. (AIG) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
Root, Inc. (ROOT) : Free Stock Analysis Report
Corebridge Financial, Inc. (CRBG) : Free Stock Analysis Report
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