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UPDATE 1-AIG says will use IPO to sell life and retirement unit

05/07/2021 09:12
UPDATE 1-AIG says will use IPO to sell life and retirement unit

Adds quote from conference call

- American International Group INC AIG.N has decided to use an IPO to sell a 19.9% stake of its life and retirement business, chief executive officer Peter Zaffino said Friday, dashing prospects for potential bidders that had included Athene Holding Ltd ATH.N.

AIG evaluated interest from competitors, but "at this time, we believe an IPO remains the optimal path forward to maximize value for our stakeholders and to position the business for additional value creation as a stand-alone company," Zaffino said in a conference call with analysts, his first as CEO of the company.

"An IPO allows AIG to retain maximum flexibility regarding the operations of the business as well as the separation process."

The life and retirement unit, which sells insurance and annuities, reported $941 million in adjusted pretax income in the first quarter, up 57% from a year ago, AIG said on Thursday. But premiums fell by 53% to $600 million. nL4N2MT4J2


(Reporting by Alwyn Scott
Editing by Chizu Nomiyama)

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