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

Rhea-AI Summary

American International Group (NYSE: AIG) announced a secondary offering of 30 million shares of Corebridge Financial (NYSE: CRBG) common stock, with the option to sell an additional 4.5 million shares within 30 days. AIG will receive all net proceeds from the sale. The last reported price of Corebridge stock on May 29, 2024, was $29.47. Morgan Stanley & Co. is the underwriter, with shares potentially sold on the NYSE, OTC market, or through negotiated transactions. The offering will be conducted solely via prospectus.

Positive

• AIG is poised to gain liquidity by selling 30 million shares of Corebridge Financial.
• The option to sell an additional 4.5 million shares within 30 days can further increase proceeds.
• The current market price for Corebridge Financial stock is relatively high at $29.47 per share.
• Morgan Stanley & Co. , a reputable underwriter, is handling the offering.

Negative

• The sale of 30 million shares could dilute Corebridge Financial's stock value.
• AIG is selling shares instead of holding, which might indicate a lack of long-term confidence in Corebridge Financial.
• Market conditions at the time of sale could affect the final realized price and proceeds.

Insights

Financial Analyst

The secondary offering of Corebridge Financial, Inc. common stock by AIG is a significant event for several reasons. Firstly, the offering involves 30 million shares at a recent price of $29.47 per share, representing around 4.9% of Corebridge's outstanding shares. This dilution could have a short-term negative impact on Corebridge's stock price as the market absorbs the additional shares.

From AIG's perspective, the proceeds from the sale will provide additional capital, which could be used to strengthen their balance sheet or fund other strategic initiatives. Investors should note that the offering is handled by Morgan Stanley, indicating strong institutional backing. It's important to watch how the market reacts to this dilution and if AIG makes any announcements regarding the use of the proceeds.

Although the offering could potentially put downward pressure on Corebridge's stock in the short term, the long-term impact will depend on how effectively AIG utilizes the capital raised.

Market Research Analyst

The offering highlights AIG's strategy to monetize its stake in Corebridge Financial, which might suggest a shift in focus or a need for liquidity. For retail investors, understanding the underlying reasons for this offering is crucial. It could signal AIG's confidence in other parts of its business or a response to current financial conditions.

The role of Morgan Stanley as the underwriter is noteworthy here. Their involvement usually implies a certain degree of confidence in the offering's success. However, investors should be cautious about potential volatility in Corebridge's stock due to the sudden influx of shares into the market.

In the context of market trends, secondary offerings can often cause stock prices to dip initially but might stabilize as the market adjusts. Observing Corebridge's trading volume and price movements post-offering will provide insights into investor sentiment and market reaction.

NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (NYSE: AIG) today announced the launch of a secondary offering of Corebridge Financial, Inc. (NYSE: CRBG) common stock. AIG, as the selling stockholder, is offering 30 million existing shares of common stock (out of approximately 608 million total shares of common stock outstanding) of Corebridge Financial and has granted a 30-day option to the underwriter to purchase up to an additional 4.5 million shares. All of the net proceeds from the offering will go to AIG. The last reported per share sale price of Corebridge Financial common stock on May 29, 2024 was $29.47.

Morgan Stanley & Co. LLC is acting as the underwriter for the offering. The underwriter may offer the shares of common stock from time to time for sale in one or more transactions on the NYSE, in the over-the-counter market, through negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

The proposed offering of common stock is being made only by means of a prospectus and accompanying preliminary prospectus supplement. Copies of the prospectus and accompanying preliminary 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/20240530698581/en/

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

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

Source: American International Group, Inc.

FAQ

What is the secondary offering announced by AIG?

AIG is offering 30 million shares of Corebridge Financial common stock, with an option to sell an additional 4.5 million shares.

How much proceeds will AIG receive from the Corebridge Financial stock sale?

All net proceeds from the sale of 30 million shares will go to AIG.

What was the last reported price of Corebridge Financial stock before the offering?

The last reported price of Corebridge Financial stock on May 29, 2024, was $29.47.

Who is the underwriter for AIG's secondary offering of Corebridge Financial?

Morgan Stanley & Co. is the underwriter for the offering.

How can investors obtain the prospectus for AIG's secondary offering?

Investors can obtain the prospectus by contacting Morgan Stanley & Co. or visiting the SEC's website.