AIG Offloads 32.6 Million Corebridge Shares in $1 Billion Secondary Offering
Corebridge Financial (NYSE: CRBG) announced that American International Group (AIG) is selling 32.6 million existing Corebridge shares at $31.10 per share—amounting to about $1.0 billion in gross proceeds for AIG. Notably, this offering represents roughly 6.3% of Corebridge's outstanding shares (32.6 million out of 520 million).
Corebridge Steps In With $500 Million Buyback—Offsetting Dilution
As part of this event, Corebridge Financial is planning to purchase approximately $500 million of its own stock from the underwriter, at the same price paid by the underwriter to AIG, and intends to fund this entirely with cash on hand. The buyback is conditional upon the completion of the secondary offering but is not a requirement for the offering’s closure. This means nearly half of the stock sold by AIG could effectively be removed from circulation by Corebridge’s buyback, a potentially shareholder-friendly move.
| Event | Detail |
|---|---|
| Shares Offered by AIG | 32.6 million |
| Offer Price per Share | $31.10 |
| Total Shares Outstanding | ~520 million |
| Gross Proceeds to AIG | $1.0 billion |
| Planned Buyback by Corebridge | $500 million |
| Buyback Price | Same as Offer ($31.10) |
Why This Move Matters: Market Implications for Corebridge and AIG
This secondary offering is noteworthy for a few reasons. First, none of the proceeds go to Corebridge itself—all funds raised will benefit AIG as the selling shareholder. For existing and potential CRBG shareholders, the main impact is on float and potential supply/demand shifts, not company fundamentals. However, Corebridge’s simultaneous $500 million buyback stands out as an offsetting move that could help absorb excess supply from the market and send a confidence signal.
Secondary offerings sometimes put short-term pressure on stock prices by increasing available shares on the open market. Here, with the planned buyback removing nearly half of the offered shares, dilution may be much less severe than it initially appears. Investors may want to monitor execution and timing: the offering closes November 6, 2025, and the buyback is dependent on successful completion.
Key Takeaways: Balancing Liquidity and Confidence
For Corebridge, the ability to finance a substantial buyback entirely with cash on hand hints at strong balance sheet management. For AIG, this move is part of a broader divestiture strategy—cashing in on its CRBG stake for $1 billion. Shareholders should keep an eye on Corebridge’s capital allocation moves and watch for any impacts to market dynamics in the days after the transaction closes.
Bottom line: With a major stakeholder shifting out and Corebridge simultaneously reducing its own share count, the company is attempting to signal both confidence and discipline. Investors now have a clear timetable and set of numbers to follow as this transaction unfolds.
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