Investors today gave Corebridge Financial — AIG's life insurance and annuity arm — a lukewarm welcome as its shares began trading on the New York Stock Exchange, under the stock symbol "CRBG."
Corebridge shares opened at $20.50 per share. The price increased to a high of $21.05 before closing at $20.73.
The S&P 500 stock index fell 1.13%, to 3,901.35, because of investor concerns about the strength of tech stocks, and worries that strong labor market and consumer spending data could lead the Federal Reserve Board to continue to increase interest rates.
What It Means
For advisors who have retail clients with some of the many life insurance policies and annuities written by AIG subsidiaries, the main direct impact will be a flurry of questions about, "What's Corebridge?"
For investors, the economic conditions that cast a shadow over the Corebridge stock trading launch could lead to long-term gains.
Market turmoil could increase customer interest in the kinds of income and benefits guarantees that Corebridge products can offer.
Higher interest rates could hurt some Corebridge operations but help others, by increasing the difference between what the company can earn on its own bond portfolio and the rates it pays customers.
The Company
Corebridge incorporates the operations of companies such as SunAmerica, American General and VALIC.
