Corebridge Financial announced that it has agreed to sell its UK life business, AIG Life Ltd., to Aviva for £460 million pounds, or about $562 million at current exchange rates.
Why it matters: The transaction is another step on the path Corebridge is taking to separate from American International Group, and another step in the Great Restructuring of the U.S. life insurance industry.
What to know: Corebridge is the Houston-based life and annuity business being carved out from AIG.
AIG began to part from Corebridge by completing an initial public offering of Corebridge common stock in September 2022. As of June 30, AIG owned 65% of the common stock of Corebridge. It had $370 billion in assets under management or administration as of June 30.
The London-based AIG Life unit was founded as Fortis Life, by Brussels-based Fortis, in 2008, according to a UK financial filing. AIG acquired the company in 2014 and renamed it.
AIG Life Ltd. has been selling permanent life insurance, critical illness insurance and disability insurance through distributors and through independent financial advisors.
It reported the equivalent of $12 million in operating profits on $805 million in revenue in 2022. About 82% of the premium revenue came from sales of life insurance and 18% from health-related products.
