American International Group Inc. as well as Blackstone Team Inc. claimed late Wednesday they have actually gotten to multibillion-dollar bargains offering the private-equity titan a significant footing in life insurance as well as annuities in addition to budget-friendly real estate.
-0.68% stock rallied 6% after the announcement, while shares of Blackstone. BX,. -1.18%
The companies claimed they have reached a deal for Blackstone to obtain a 9.9% equity stake in the insurer’s life and also retired life service for $2.2 billion.
As part of the all-cash offer, Blackstone will certainly manage a first $50 billion of AIG’s life and retired life’s financial investment profile, with the amount rising to $92.5 billion in the next six years, the companies said.
Both purchases are anticipated to nearby the end of the third quarter, as well as Jon Gray, Blackstone’s chief running police officer, will certainly join AIG’s life and also retirement board, the firms stated.
Independently, AIG and also a real-estate revenue depend on affiliated with Blackstone will acquire AIG’s passions in an U.S. budget-friendly housing portfolio for regarding $5.1 billion, likewise in an all-cash transaction, the firms claimed. That deal is expected to close in the fourth quarter.
The REIT in June stated it was getting Home Partners of America Inc., a lease-to-buy homeownership company, in a deal that valued the company at $6 billion.
Wednesday’s partnership with Blackstone “confirms the stamina of our market-leading life & & retirement business and also offers it with added development chances, offers AIG with versatility as we remain to function to different life & & retirement from AIG, as well as results in significant new resources for AIG to release to sustain our capital monitoring concerns,” AIG President Peter Zaffino said in a statement.
When it comes to the affordable-housing profile, the properties consisted of in the deal “are no longer core to AIG’s long-lasting financial investment method. We believe Blackstone has the right proficiency and also dedication to stakeholders to manage these properties moving forward,” he claimed.