BlackStone acquires AIG’s Life & Retirement business in $2.2 billion

American International Group (AIG) has collaborated with American investment management company Blackstone. Following the collaboration AIG will sell 9.9% equity stake of its Life & Retirement Business to Blackstone. 

 

Blackstone paid $2.2 billion for part acquisition. As a part of partnership both the companies have also agreed for a long term asset management relationship. AIG will focus on expanding its $50 billion investment portfolio with the help of Blackstone. 

 

Partnership transactions would be completed by 2021’s third quarter end. Post transaction clearance Jon Gray Chief Operating Officer of Blackstone will join AIG’s Board of Directors. 

 

(Must Check: Introduction to Insurance Regulatory and Development Authority (IRDA))

 

Part acquisition will open a full circle of opportunities for AIG. It will provide additional growth opportunities. Blackstone’s strong investment portfolio experience will help in AIG’s Retirement business expansion.  Blackstone will also invest $5.1 billion in the US affordable housing portfolio. This deal will be closed by the fourth quarter of 2021. Blackstone is eager to make more real estate investments. 

 

AIG is a global insurance company headquartered in New York. AIG’s financial advisors include Evercore and J.P. Morgan Securities LLP. Goldman Sachs also served as a financial advisor for Life & Retirement business transactions. AIG provides life insurance ,retirement services, and mutual funds. 

 

(Also read: What are Different Types of Insurance?)

 

Company also extends financial advice to help customers in building a varied and lucrative portfolio. American General Life Insurance Company, Variable Annuity Life Insurance Company, United States Life Insurance Company are a part of AIG’s portfolio.   

 

According to businesswire Blackstone’s CEO Jon Gray said: “We are honored to become AIG’s strategic partner, supporting the growth and success of one the world’s top life insurers as a standalone business. We believe our leading private credit origination platform will play an important role to help meet long-term policyholder obligations while maintaining strong credit quality.”