Insurance coverage large American Worldwide Group Inc (AIG) has as we speak revealed it has been fielding inquiries from firms contemplating shopping for a stake within the life and retirement (L&R) enterprise which the insurer is in search of to divest. Citing the phrases of AIG president Peter Zaffino (pictured) throughout a convention name with analysts, Bloomberg highlighted that AIG has acquired inquiries from events involved in a strategic alignment and in probably buying the 19.9% stake in L&R.
“We’re happy with the extent of curiosity and high quality potential companions for the life and retirement enterprise,” Zaffino mentioned, “and imagine a sale of a minority stake may very well be a pretty choice for AIG, and shareholders and different stakeholders.”
The feedback observe the group’s announcement final 12 months that it’s seeking to separate the L&R enterprise from its property-casualty operation. Bloomberg reported that Zaffino, who is ready to turn out to be CEO in March, has mentioned the enterprise is rigorously weighing up its choices, which embody promoting the stake to a 3rd get together or a minority public providing. He famous that the present expectation is that an preliminary disposition of 19.9% of L&R will generate internet proceeds, some portion of which can be utilized towards additional share repurchases.
He additionally said that based mostly on AIG’s efforts to arrange the L&R enterprise for a divestment that the assumption is that no further fairness capital might be required, as a result of enhancements the insurer has seen in its subsidiary capital positions over the previous couple of years. The information follows the discharge of AIG’s This fall 2020 outcomes earlier within the week which highlighted how the insurer has been hit by catastrophes together with COVID-19.