Nippon Life Insurance Company (Nippon Life), Japan's largest life insurance company, has reached an agreement with CoreBridge Financial and its parent company American International Group (AIG) to acquire a 20% stake in CoreBridge. announced.
Through this acquisition, Nippon Life will establish a strategic partnership with both companies in order to increase the value of CoreBridge. Purchases must be paid in cash.
CoreBridge has over $390 billion in assets under management and administration as of March 31, 2024 and is one of the largest retirement solutions and insurance product providers in the United States.
AIG announced that it will sell approximately 120 million shares of CoreBridge common stock (representing 20% of the stock) to Nippon Life for $31.47 per share, for a total consideration of $3.8 billion. Under the terms of the transaction, AIG has agreed to maintain a 9.9% ownership interest in CoreBridge for two years following closing.
The sale is expected to close by the first quarter of 2025, subject to customary closing conditions, including required regulatory approvals.
AIG Chairman and CEO Peter Zaffino said in a statement: We are pleased to have Nippon Life as a strategic partner of CoreBridge and believe they will add meaningful value as an investor. ”
Reason for acquisition of Nippon Life
Nippon Life Insurance Co., Ltd. announced that its medium-term business plan for fiscal years 2024 to 2026 sets global business expansion as a strategic direction. Under this policy, Nippon Life will strive to expand its business by growing existing businesses and investing in new businesses.
By investing in CoreBridge, the major life insurance company aims to grow CoreBridge's business and establish a business foundation and network in the U.S. life insurance and retirement benefit market, which is the largest in the world and is expected to continue to grow steadily. The company aims to do so. This will accelerate the geographic diversification of Nippon Life's revenue sources and ensure the long-term business and policyholder interests of Nippon Life.
