Private Equity Firm Blackstone Reaches Agreement to Manage AIG Life and Pension Insurance

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The world's largest private equity firm, the U.S.-based Blackstone Group, has agreed with AIG to manage a portion of AIG's life and pension insurance assets, the Wall Street Journal (WSJ) reported on the 14th (local time).

According to the report, under this agreement, Blackstone will manage AIG's life and pension insurance assets starting from $50 billion and expanding to $100 billion within six years.

Currently, AIG manages life and pension insurance assets worth approximately $200 billion.

Blackstone will also acquire a 9.9% stake in AIG's life and pension insurance division for $2.2 billion, and Jonathan Gray, Chairman of Blackstone, will join AIG's board of directors.

The WSJ emphasized the significance of this agreement as a major step for private equity firms to become key players in the insurance industry.

Last October, AIG appointed Peter Zaffino as its new CEO and announced that it was prepared to spin off assets in a way that maximizes shareholder value.

At that time, the WSJ predicted that AIG might spin off its life insurance division like its competitor AXA, either through an initial public offering (IPO) or by selling part or all of the spun-off business.

Meanwhile, Blackstone's non-listed real estate investment trust (BREIT) also announced that it will acquire $5.1 billion worth of affordable housing assets (housing for low- to moderate-income residents supplied alongside office building developments in urban areas) that AIG has held for decades.

This content was produced with the assistance of AI translation services.