- AIG to Sell 9.9% Equity
Stake in its Life & Retirement Business to Blackstone for $2.2
Billion
- AIG and Blackstone to Enter
into a Strategic Asset Management Relationship for a Portion of the
Life & Retirement Investment Portfolio
- AIG to Sell Certain
Affordable Housing Assets to Blackstone Real Estate Income Trust,
Inc. for $5.1 Billion
- Transactions Provide AIG
with Significant Financial Flexibility and Support AIG’s Progress
toward Separating its Life & Retirement Business
American International Group, Inc. (NYSE: AIG) and Blackstone
(NYSE: BX) today announced that they have reached a definitive
agreement for Blackstone to acquire a 9.9% equity stake in AIG’s
Life & Retirement business for $2.2 billion in an all cash
transaction.
As part of this agreement, AIG also agreed to enter into a
long-term strategic asset management relationship with Blackstone
to manage an initial $50 billion of Life & Retirement’s
existing investment portfolio upon closing of the equity
investment, with that amount increasing to $92.5 billion over the
next six years.
Upon the closing of these transactions, which are expected to
occur simultaneously by the end of the third quarter of 2021, Jon
Gray, President and Chief Operating Officer of Blackstone, will
join the Life & Retirement Board of Directors. These
transactions are subject to HSR approval and other customary
closing conditions.
Separately, AIG and Blackstone Real Estate Income Trust (BREIT),
a long-term, perpetual capital vehicle affiliated with Blackstone,
also announced today that they have reached a definitive agreement
for BREIT to acquire AIG’s interests in a U.S. affordable housing
portfolio for approximately $5.1 billion, in an all cash
transaction. This transaction is subject to customary closing
conditions and is expected to close in the fourth quarter of
2021.
“Today’s announcement is an important milestone for AIG.
Establishing a cornerstone partnership on several fronts with such
a highly regarded organization as Blackstone validates the strength
of our market-leading Life & Retirement business and provides
it with additional growth opportunities, provides AIG with
flexibility as we continue to work to separate Life &
Retirement from AIG, and results in significant new capital for AIG
to deploy to support our capital management priorities,” said Peter
Zaffino, President and Chief Executive Officer of AIG.
Mr. Zaffino added: “AIG has stewarded the Affordable Housing
portfolio for more than 30 years. While the highly specialized
assets subject to this transaction are attractive investments, they
are no longer core to AIG’s long-term investment strategy. We
believe Blackstone has the right expertise and commitment to
stakeholders to manage these assets going forward.
“We look forward to a productive and value-enhancing partnership
with Blackstone as we continue to build momentum on our journey to
become a top performing company.”
Jon Gray said: “We are honored to become AIG’s strategic
partner, supporting the growth and success of one the world’s top
life insurers as a standalone business. We believe our leading
private credit origination platform will play an important role to
help meet long-term policyholder obligations while maintaining
strong credit quality.”
Kathleen McCarthy, Global Co-Head of Blackstone Real Estate,
commenting on the real estate transaction, added: “These
communities provide critical affordable housing and we look forward
to being long-term owners. We will make significant investments to
improve the apartments while ensuring they remain affordable and in
compliance with all rent regulations. We are committed to working
with our partners in this sector to expand the supply of affordable
housing.”
AIG’s financial advisors with respect to the Life &
Retirement transactions are Evercore and J.P. Morgan Securities
LLC, and its legal advisors are Wachtell, Rosen, Lipton & Katz
and Debevoise & Plimpton LLP. With respect to the sale of the
Affordable Housing portfolio, CBRE Capital Advisors, Inc. acted as
AIG’s financial advisor, and its legal advisors are Sullivan &
Cromwell LLP, Nixon Peabody LLP and Elkins Kalt Weintraub Reuben
Gartside, LLP.
On the Life & Retirement transactions, Goldman Sachs served
as financial advisor, and Simpson Thacher and Bartlett LLP and
Skadden, Arps, Slate, Meagher & Flom LLP served as legal
advisor to Blackstone. With respect to the Affordable Housing
portfolio transaction, Blackstone’s financial advisors were Eastdil
Secured, J.P. Morgan Securities LLC and Morgan Stanley & Co.
LLC and legal advisors were Simpson Thacher & Bartlett LLP and
Jones Day.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in
approximately 80 countries and jurisdictions. These diverse
offerings include products and services that help businesses and
individuals protect their assets, manage risks and provide for
retirement security. AIG common stock is listed on the New York
Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries and jurisdictions, and coverage is subject to
underwriting requirements and actual policy language. Non-insurance
products and services may be provided by independent third parties.
Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate
in state guaranty funds, and insureds are therefore not protected
by such funds.
About Blackstone
Blackstone is one of the world’s leading investment firms. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our $649 billion in
assets under management include investment vehicles focused on
private equity, real estate, public debt and equity, life sciences,
growth equity, opportunistic, non-investment grade credit, real
assets and secondary funds, all on a global basis. Further
information is available at www.blackstone.com. Follow Blackstone
on Twitter @Blackstone.
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version on businesswire.com: https://www.businesswire.com/news/home/20210714005893/en/
AIG Contacts: Quentin McMillan (Investors):
Quentin.Mcmillan@aig.com Dana Ripley (Media):
Dana.Ripley@aig.com
Blackstone Contacts: Weston Tucker (Investors):
Weston.Tucker@blackstone.com Matt Anderson (Media):
Matthew.Anderson@blackstone.com
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