On October 26, 2020, American International Group (AIG) announced a plan to separate its Life and Retirement business from the remainder of the AIG organization, while AIG also announced that Peter Zaffino, AIG’s current President, will become AIG’s Chief Executive officer in March 2021 (succeeding Brian Duperreault). AIG is a major provider of individual life insurance and annuities in the U.S., through subsidiaries American General Life Insurance Company (AGL), United States Life Insurance Company in the City of New York (USLNY), and Variable Annuity Life Insurance Company (VALIC).
AIG’s press release noted that the company believes that “a simplified corporate structure will unlock significant value for shareholders and other stakeholders”.
Additionally, AIG’s CEO Brian Duperreault stated that “over the last three years, we have taken significant action to de-risk AIG and position the company for profitable growth, including fortifying General Insurance (AIG’s property/casualty insurance business), diversifying Life & Retirement, significantly strengthening AIG’s capital and liquidity position, and building a world-class team. This foundational work has positioned AIG to pursue a separation of Life & Retirement enabling both companies to prosper as stand-alone entities.”
The press release did not mention of how or when the separation will occur. Further information may be available in AIG’s 3rd quarter 2020 earnings release and analyst call (scheduled on November 6).