American International Group, Inc. (NYSE:AIG) has sold 30 million shares of Corebridge Financial, Inc. (NYSE:CRBG) common stock, according to a recent SEC filing. The shares were sold at a price of $31.20 each, amounting to a total transaction value of $936 million. Following this sale, American International Group holds approximately 249.2 million shares of Corebridge Financial.
In other recent news, Corebridge Financial celebrated robust Q3 results, with a 31% year-over-year increase in operating earnings per share (EPS) to $1.38. The firm's strategic initiatives have led to a rise in individual retirement premiums and deposits, and the successful launch of its first registered index-linked annuity (RILA). Corebridge returned a total of $1.8 billion to shareholders year-to-date, indicating a solid financial position and a positive outlook for continued growth.
The company's individual retirement premiums and deposits surged 40% to $5.5 billion, and it saw increases in Group Retirement and Life Insurance (NS:LIFI) sales by 10% and 14%, respectively. Adjusted return on average equity (ROE) improved to 13.3%. The firm's diversified business model resulted in consistent cash flows, with total distributions from domestic insurance companies expected to exceed $2 billion in 2024.
Corebridge plans to maintain its growth through organic expansion, balance sheet optimization, and capital management. The company is also preparing for potential seasonal fluctuations in Q4 and is exploring new business generation opportunities in Bermuda. Despite a 3% sequential drop in base spread income due to hedging costs and elevated asset prepayments, the company's outlook remains positive.
InvestingPro Insights
As American International Group (AIG) reduces its stake in Corebridge Financial (CRBG), investors may find value in examining CRBG's current financial position and market performance. According to InvestingPro data, Corebridge Financial boasts a market capitalization of $17.62 billion, indicating its significant presence in the financial sector.
Despite recent challenges, including a negative operating income of $1.01 billion over the last twelve months, CRBG shows signs of potential recovery. InvestingPro Tips highlight that management has been aggressively buying back shares, which could signal confidence in the company's future prospects. Additionally, analysts predict that the company will return to profitability this year, with net income expected to grow.
Investors should note CRBG's strong recent performance, with a 64.97% price total return over the past year and an impressive 46.7% return year-to-date. This positive momentum is further supported by a robust 18.98% return over the last three months, suggesting growing investor confidence.
While CRBG faces challenges such as weak gross profit margins, its price-to-book ratio of 1.28 may indicate potential value for investors. The company also offers a dividend yield of 2.97%, which could be attractive for income-focused shareholders.
For those considering an investment in CRBG, it's worth noting that InvestingPro offers 8 additional tips that could provide further insights into the company's financial health and future prospects. These additional tips, available through the InvestingPro product, could help investors make more informed decisions about Corebridge Financial's potential in light of AIG's recent share sale.
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