Corebridge Financial finalizes £453m sale of UK life insurance business to Aviva
Corebridge Financial, Inc. (NYSE: CRBG), a leading entity in the life and retirement products sector, has successfully concluded the sale of its UK-based life insurance business, AIG Life Limited, to Aviva plc, one of the foremost names in the financial services industry. This transaction, valued at £453 million, marks a significant milestone for Corebridge, allowing it to sharpen its focus on life and retirement solutions within the United States.
The definitive agreement for this strategic divestiture was first announced in September 2023, setting the stage for a pivotal realignment of Corebridge’s business operations. The sale was anticipated to close in the first half of 2024, subject to obtaining necessary regulatory approvals, and has now been finalized following the receipt of all required consents.
Peter Zaffino, Chairman and Chief Executive Officer of American International Group, Inc. (NYSE: AIG), which is the majority shareholder of Corebridge, and Chairman of the Board of Directors of Corebridge, highlighted the importance of this transaction. He stated, “This transaction is another positive step toward streamlining the Corebridge portfolio to focus on the Life & Retirement products and solutions that are driving positive results in the United States. We are confident that Aviva will continue to provide individuals and employers with the innovative service and solutions they need to protect themselves and their employees.”
Kevin Hogan, President and Chief Executive Officer of Corebridge, echoed Zaffino’s sentiments, emphasizing the company’s strategy to leverage its strong market position in the U.S. He remarked, “Since acquiring the UK Life business in 2014, we have built a well-established provider of life insurance, critical illness, and income protection products in the UK. We look forward to working closely with Aviva to ensure a smooth transition for employees, customers, and distribution partners.”
AIG Life Limited, now under Aviva plc’s stewardship, has been a pivotal part of Corebridge Financial’s portfolio in the UK, offering comprehensive financial and practical support to individuals, families, and businesses. The acquisition by Aviva plc not only reinforces its commitment to the life insurance sector but also promises continuity and innovation in service and solutions for existing and future clients.
J.P. Morgan Securities LLC and Skadden, Arps, Slate, Meagher & Flom LLP served as financial advisor and legal counsel, respectively, to Corebridge, ensuring a seamless transaction process.
This transaction between Corebridge Financial, Inc. and Aviva plc is a landmark deal in the insurance sector, underscoring the strategic realignment of Corebridge towards its core markets in the United States while enabling Aviva to expand its life insurance footprint in the UK. The sale is indicative of the evolving landscape in the global insurance industry, where companies are increasingly focusing on core competencies and markets to drive growth and deliver value to stakeholders.