Companies

AIG to Pursue Separation of Life & Retirement Business

Image

NEW YORK--(BUSINESS WIRE)--Oct. 26, 2020-- American International Group, Inc. (NYSE: AIG) today announced its intention to separate its Life & Retirement business from AIG.

The company’s executive management team, with assistance from independent financial and legal advisors and oversight from the AIG Board of Directors, conducted a comprehensive review of the company’s current composite structure, including strategic, operational, capital and tax implications. As a result of this review, executive management recommended, and the Board has decided to pursue, a separation of the Life & Retirement business from AIG.

AIG’s executive management and Board believe a simplified corporate structure will unlock significant value for shareholders and other stakeholders. Although no decisions have been made as to how to achieve a full separation, the Board’s intent is to accomplish it in a way that maximizes shareholder value and establishes two independent, market leading companies.

Brian Duperreault, AIG’s Chief Executive Officer, stated, “Over the last three years, we have taken significant action to de-risk AIG and position the company for profitable growth, including fortifying General Insurance, diversifying Life & Retirement, significantly strengthening AIG’s capital and liquidity position, and building a world-class team. This foundational work has positioned AIG to pursue a separation of Life & Retirement enabling both companies to prosper as stand-alone entities.”

Peter S. Zaffino, AIG’s President & Global Chief Operating Officer, and CEO-elect, stated, “Across AIG, we have made significant progress executing on our strategy to deliver value for our clients, distribution partners, shareholders and other stakeholders. Our businesses can be further strengthened by separating Life & Retirement from AIG, which we believe will enable each entity to achieve a more appropriate and sustainable valuation.”

Douglas M. Steenland, speaking on behalf of the AIG Board of Directors, added, “The Board worked closely with executive management as they conducted a comprehensive review of AIG’s composite structure, and AIG’s Directors are confident that a separation of Life & Retirement from AIG will create value for shareholders and benefit all stakeholders.”

Since late 2017, the General Insurance business has been successfully executing foundational work to reposition its portfolio and reduce volatility through disciplined underwriting and expense control within a clearly defined risk appetite and comprehensive reinsurance strategy. As a market leader, General Insurance will continue to focus on achieving long-term, profitable growth.

As an independent company, the Life & Retirement business will be well positioned to build value for shareholders by leveraging a broad product portfolio and diverse distribution to tailor its offerings to best meet the evolving needs of customers and distributors.

Any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission. No assurance can be given regarding the form that a separation transaction may take or the specific terms or timing thereof, or that a separation will in fact occur.

This news release is not an offer to sell, or a solicitation of an offer to buy, any securities.

Trending
Share this Post:
Posted by IRL Editor

Advertisement

Ad

Related articles

SME reliance on key client emphasizes demand for COVID-19 cover, says GlobalData

Nearly 30% of medium-sized small to medium enterprises (SMEs) in the UK are either very or extremely concerned about being overdependent on one client, according to GlobalData’s 2020 UK SME Insurance Survey....

Brokerslink and Swiss Re Corporate Solutions have launched a dedicated international insurance programme management platform

Novemver 24, 2020  Global broking business Brokerslink has today launched its dedicated international insurance programme management platform to drive the continued growth and digitalisation of its...

Chubb Index Highlights Importance of Professional Services Industry Taking More Protective Steps Against Cyber Attacks

WHITEHOUSE STATION, N.J., Nov. 24, 2020 /PRNewswire/ -- In the latest edition of the Chubb Cyber InFocus Report, Chubb data reveals that the professional services industry need...

PwC Actuarial Services Hails Aon's PathWise® Platform for IFRS 17 Reporting

LONDON, Nov. 24, 2020 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today announces that professional...
issue

Trident Marine Managers & Global Special Risks Join Forces Within RSG Underwriting Managers

New Practice Vertical Created – Marine and Traditional Energy NOVEMBER 23, 2020 | CHICAGO, IL – RSG Underwriting Managers, LLC is pleased to announce the consolidation of two of its current underwriting...

2020’s Turmoil Takes Toll on Insurers’ Finances, New Triple-I / Milliman Report Shows

NEW YORK, Nov. 17, 2020 –The global pandemic and costly natural catastrophes will contribute to a projected 101.7 combined ratio for the U.S.’s property/casualty (P/C) insurers in 2020, higher than...