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American International Group, Inc. (AIG) - free report >>
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American International Group, Inc. (AIG) - free report >>
Ambac Financial Group, Inc. (AMBC) - free report >>
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AIG Seeks to Sell 65M Corebridge Shares in Secondary Offering
American International Group, Inc. (AIG - Free Report) recently launched the secondary offering of shares held in its Corebridge Financial, Inc. (CRBG - Free Report) subsidiary. AIG is seeking to sell 65 million shares in the offering, where underwriters will have the 30-day option to buy 9.8 million more shares.
American International has 648 million CRBG shares outstanding. The secondary offering is likely to bring it $1.3 billion, per Bloomberg. AIG will receive all the net proceeds from the offering. It is the majority shareholder in Corebridge.
As of Mar 31, 2023, AIG held 77.3% of Corebridge’s outstanding common stock. The secondary offering will trim its position in CRBG by 10% to around 67%, per The Insurer. Last September, AIG closed the IPO of Corebridge, the holding company for its Life and Retirement business.
The aggregate gross proceeds from the initial offering before deductions to AIG were $1.7 billion. With the spin-off, the company has focused more on de-levering and investing in business growth. It sold 80 million shares in the IPO.
The latest news follows Corebridge’s announcement of approving a special dividend of 62 cents per share, or around $400 million in total. The special dividend will be given along with its regular quarterly dividend of 23 cents per share.
Price Performance
American International shares have gained 0.9% in the past month against the 0.6% fall in the industry.
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Zacks Rank & Other Key Picks
AIG currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader finance space are Ambac Financial Group, Inc. (AMBC - Free Report) and Lemonade, Inc. (LMND - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ambac Financial’s 2023 earnings has improved 68% over the past 30 days. During this time, AMBC has witnessed one upward estimate revision against none in the opposite direction.
The Zacks Consensus Estimate for Lemonade’s 2023 earnings suggests 15.9% year-over-year growth. Also, the consensus mark for LMND’s 2023 revenues implies a 53.6% year-over-year surge.