AIG Announces Closing of Secondary Offering of Corebridge Financial, Inc. Common Stock

Rhea-AI Summary

American International Group (AIG) announced the completion of its secondary offering of Corebridge Financial (CRBG) common stock. AIG sold 30 million shares of Corebridge Financial's common stock at $29.20 per share, generating approximately $872 million in net proceeds after expenses. Morgan Stanley & Co. acted as the underwriter for the offering. The secondary offering also included a 30-day option for the underwriter to purchase an additional 4.5 million shares. The registration statement for this offering was filed with the U.S. Securities and Exchange Commission and became effective automatically.

Positive

• AIG successfully closed the secondary offering, selling 30 million shares.
• The offering generated approximately $872 million in net proceeds for AIG.
• The offering price per share was $29.20, reflecting investor confidence.
• Morgan Stanley & Co. , a reputable underwriter, managed the offering.

Negative

• The sale reduced AIG's ownership stake in Corebridge Financial.
• The offering involved substantial underwriting discounts and commissions.
• The offering may create short-term stock price pressure due to the increase in available shares.

Insights

Financial Analyst

The successful closing of AIG's secondary offering of Corebridge Financial shares is a significant event for investors. By offloading 30 million shares at $29.20 per share, AIG raised approximately $872 million after expenses. This influx of cash can bolster AIG’s liquidity and potentially be used for debt reduction, strategic investments, or other corporate needs.

For Corebridge Financial, the secondary offering could lead to a temporary dip in stock price due to increased supply. This might present a buying opportunity for long-term investors if they believe in the company's fundamentals and growth prospects. It’s important to note that secondary offerings do not dilute existing shareholders since they involve shares already outstanding, but they can impact market perception.

From a broader market perspective, the involvement of Morgan Stanley as the underwriter adds credibility to the offering, indicating strong institutional support. However, investors should remain cautious and consider the short-term market dynamics that could affect the stock price of both AIG and Corebridge Financial.

Market Research Analyst

The secondary offering reflects AIG’s strategic move to divest its stake in Corebridge Financial, a subsidiary specializing in life and retirement insurance. Such moves often indicate a repositioning of a parent company's focus or a shift in its long-term strategy. Investors should monitor if AIG plans further divestments or acquisitions, as this could signal broader changes in its business model.

For retail investors in Corebridge Financial, the offering price of $29.20 per share serves as a short-term benchmark. The stock's performance post-offering will be important in determining market sentiment. Historically, secondary offerings can lead to volatility; however, they also provide liquidity to the market, allowing for more active trading.

Additionally, the net proceeds raised by AIG highlight the value that the market places on Corebridge Financial’s shares. This can be seen as a positive sign for those holding or considering investment in Corebridge, suggesting that it is a valuable asset within the financial services sector.

NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (NYSE: AIG) today announced the closing of its secondary offering of shares of Corebridge Financial, Inc. (NYSE: CRBG) common stock. AIG, as the selling stockholder, sold 30 million existing shares of common stock (out of approximately 608 million total shares of common stock outstanding) of Corebridge Financial at a public offering price of $29.20 per share, which included a 30-day option to the underwriter to purchase up to an additional 4.5 million shares.

The net proceeds of the offering to AIG, after deducting underwriting discounts and commissions and other expenses payable by AIG, were approximately $872 million.

Morgan Stanley & Co. LLC acted as the underwriter for the offering.

The offering of common stock was made only by means of a prospectus and an accompanying prospectus supplement. Copies of the prospectus and accompanying prospectus supplement relating to the offering may be obtained by contacting Morgan Stanley & Co. LLC via mail at 180 Varick Street, 2nd Floor, New York, NY, 10014.

A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission on November 6, 2023 and became effective automatically. The registration statement may be obtained free of charge at the SEC’s website at www.sec.gov (EDGAR/Company Filings) under “Corebridge Financial, Inc.” This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About AIG

American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners.

About Corebridge Financial

Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $390 billion in assets under management and administration as of March 31, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240602877728/en/

Quentin McMillan (Investors): quentin.mcmillan@aig.com

Claire Talcott (Media): claire.talcott@aig.com

Source: American International Group, Inc.

FAQ

What did AIG announce in its recent press release?

AIG announced the closing of its secondary offering of Corebridge Financial common stock.

How many shares did AIG sell in the secondary offering?

AIG sold 30 million shares of Corebridge Financial common stock.

What was the public offering price per share in the AIG secondary offering?

The public offering price was $29.20 per share.

How much did AIG earn from the secondary offering of Corebridge Financial stock?

AIG earned approximately $872 million in net proceeds from the offering.

Who was the underwriter for AIG's secondary offering?

Morgan Stanley & Co. acted as the underwriter for the offering.

Was there an option for additional shares in AIG's secondary offering?

Yes, there was a 30-day option for the underwriter to purchase up to an additional 4.5 million shares.

When was the registration statement for AIG's offering filed with the SEC?

The registration statement was filed on November 6, 2023, and became effective automatically.