US-headquartered insurance provider AIG plans to separate its life and retirement business.
Following a review of the company’s current structure, the executive management team recommended that the life and retirement arm of the firm should be separated from AIG.
The move is mainly attributed to the fact that the company would achieve a “simplified corporate structure” through the divestment, which would “unlock significant value for shareholders and other stakeholders,” it said.
A spokesperson for AIG told International Adviser that the separation would include the global life and retirement business, not just the US arm.
This means that the life and retirement division, once split from the insurer, would operate as an independent company.
AIG was not able to provide any further details on the type of transaction that will be used to divest the business arm, as plans are still at early stages.
A stronger business
Brian Duperreault, AIG’s chief executive, said: “Over the last three years, we have taken significant action to de-risk AIG and position the company for profitable growth, including fortifying general insurance, diversifying life and retirement, significantly strengthening AIG’s capital and liquidity position, and building a world-class team.
“This foundational work has positioned AIG to pursue a separation of Life & Retirement enabling both companies to prosper as stand-alone entities.”
Peter Zaffino, AIG’s president, global chief operating officer, and chief executive-elect, added: “Across AIG, we have made significant progress executing on our strategy to deliver value for our clients, distribution partners, shareholders and other stakeholders.
“Our businesses can be further strengthened by separating life and retirement from AIG, which we believe will enable each entity to achieve a more appropriate and sustainable valuation.”
Any future plans will be subject to approvals by the board of directors and relevant regulators.
