HOUSTON, TX – Corebridge Financial, Inc. (NYSE:CRBG), a prominent life insurance company, has entered into a significant share repurchase agreement with American International Group, Inc. (NYSE:AIG). The agreement, finalized on Monday, involves the repurchase of Corebridge shares at a per-share price of $24.90, which was the closing price on the New York Stock Exchange on the same day.
The transaction is set to take place on Wednesday, with Corebridge Financial planning to buy back shares for an aggregate purchase price of around $200 million, subject to customary closing conditions. This strategic move will see the company reacquire a portion of its outstanding common stock from AIG.
The details of the Share Repurchase Agreement were disclosed in a recent 8-K filing with the Securities and Exchange Commission. The full text of the agreement has been filed as Exhibit 10.1 and is incorporated by reference in the report.
Corebridge Financial, previously known as SAFG Retirement Services, Inc., is based in Houston, Texas, and operates under the life insurance industry classification. With this transaction, the company aims to manage its capital structure effectively.
Investors and stakeholders are keeping a close eye on the execution of this repurchase, which reflects the company's financial strategies and its commitment to managing shareholder value. The share repurchase is a common practice among publicly traded companies, allowing them to return capital to shareholders and potentially increase earnings per share.
This financial maneuver is based on the company's assessment of its stock's value and is a part of its broader capital management policy. The repurchase is expected to proceed without any undue delay, with the anticipation that it will be completed by the stipulated date, assuming all conditions are met satisfactorily.
The information regarding this financial activity is based on a press release statement and provides a clear example of how companies utilize share repurchases as a tool for capital allocation.
In other recent news, Corebridge Financial has showcased robust growth in Q2 2024, with a significant increase in operating results. The company's operating earnings per share rose by 9% year-over-year, and a 17% increase from the previous year was observed in premiums and deposits, which totalled $11.7 billion. Corebridge also reported a 5% growth in aggregate core sources of income, including base spread income, fee income, and underwriting margin.
The return on average equity (ROAE) for Corebridge stood at 12% for the first half of the year, and the company returned $575 million to shareholders through dividends and share repurchases. Despite a decline in variable investment income due to alternative investments, Corebridge holds $19 billion of high-quality assets, marking a 58% increase from the previous year.
These are among the recent developments for the company. Looking ahead, Corebridge plans to distribute remaining proceeds from the sale of its UK life business to shareholders in the second half of the year. Analysts from various firms have noted the company's strong balance sheet and its focus on optimizing its portfolio and capital management strategy.
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