AIG Completes Corebridge Divestiture, Enhancing Focus on Property & Casualty Insurance

AIG Completes Corebridge Divestiture, Enhancing Focus on Property & Casualty Insurance

On May 5, 2026, American International Group, Inc. (AIG) announced the sale of its remaining 25 million shares in Corebridge Financial, Inc., marking the culmination of a five-year strategy to exit the life and retirement business. This transaction, expected to close on May 7, will yield approximately $710 million in net proceeds for AIG.

Strategic Shift Towards Property & Casualty Insurance

AIG’s divestiture of Corebridge signifies a strategic realignment, allowing the company to concentrate on its core property and casualty insurance operations. Peter Zaffino, AIG’s Chairman and CEO, emphasized that this move transforms AIG into a more focused, leading global property and casualty insurance company.

Financial Performance and Market Response

In the fourth quarter of 2025, AIG reported a net income of $735 million, or $1.35 per diluted common share. The adjusted after-tax income stood at $1.1 billion, or $1.96 per diluted common share, reflecting higher underwriting income and net investment income in General Insurance.

Following the divestiture announcement, AIG’s stock price experienced a modest increase, trading at $79.17 as of July 10, 2026. Analysts have responded positively; for instance, Keefe, Bruyette & Woods raised AIG’s price target to $97, citing expectations for faster premium growth and net investment income.

Analyst Perspectives

Analysts have maintained a favorable outlook on AIG. UBS, for example, upheld a ‘Buy’ rating, adjusting the price target slightly from $94 to $92, reflecting confidence in AIG’s strategic direction and financial health.

Conclusion

AIG’s completion of the Corebridge Financial divestiture marks a significant milestone in its strategic transformation. By focusing on property and casualty insurance, AIG aims to enhance its market position and financial performance. The positive response from analysts and the market underscores confidence in AIG’s future prospects.