Best’s News & Research Service - July 15, 2021 05:29 PM (EDT)
AM Best Comments on Updated Terms of AIG Life & Retirement Group Split From American International Group, Inc.
- July 15, 2021 05:29 PM (EDT)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings (ratings) of American International Group, Inc. (AIG) (headquartered in New York, NY) and its subsidiaries remain unchanged following the July 14, 2021, announcement of its planned strategic sale and partnership with Blackstone in which Blackstone will acquire a 9.9% stake in AIG Life & Retirement Group (Life and Retirement) and become the exclusive asset manager for a certain portion of the Life and Retirement division’s assets.
Under the terms of the agreement, AIG will receive $2.2 billion and Blackstone will receive a 9.9% stake in the Life and Retirement division and maintain a board seat. Blackstone and AIG also have entered into a separate management account agreement in which Blackstone will manage a portion of the Life and Retirement assets. The total of these allocations will be $50 billion, with that amount increasing over the initial term of six years with the potential for subsequent extensions. Additionally, AIG has agreed to sell its affordable housing business, which has been in run-off since 2009, to Blackstone for $5.1 billion. AM Best expects the sale to increase liquidity and add available capital to AIG while receiving the benefits of Blackstone’s extensive expertise in real estate and property management.
AM Best believes this to be an important step along the path toward a full deconsolidation and meeting the company’s self-imposed target date; however, as much more work needs to be accomplished until completion, AM Best’s view on the current ratings remain unchanged at this time.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.