AIG General Insurance and Life & Retirement Earnings
The transactions with Blackstone generate new capital, provide flexibility on IPO
timing and size, and utilize additional foreign tax credits (FTCs)
Transaction
Consideration
Approvals
and Timing
Strategic
Rationale
& Other
•
•
Equity Stake
in Life and Retirement
Blackstone to acquire a 9.9% equity
stake in Life and Retirement
$2.2B (1.1x target pro forma
adjusted target book value of
$20.2B)
HSR approval and other customary
closing conditions
Expected closing during 3Q21
Demonstrates commitment to
IPO/separation and provides
flexibility on timing and size of future
IPO
Solidifies Blackstone as anchor
•
investor and strategic partner
through IPO process
Represents the single largest
corporate investment the firm has
made in its 35-year history
Blackstone will provide strategic
insight with Jonathan Gray,
President & COO joining Life and
Retirement Board of Directors
•
Separately Managed
Account (SMA) Agreements
Subsidiaries of Life and Retirement
will enter into a SMA agreement with
Blackstone to perform certain
investment management services
Transfer of $50B of existing Life and
Retirement illiquid assets, which
increases to $92.5B over next the 6
years
Expected closing during 3Q21
.
Engages "best in breed' asset
manager for asset classes where
Blackstone has demonstrated strong
•
•
.
Provides opportunity for yield
enhancement over time
.
Retains control by Life and
expertise
Retirement over the asset allocation
process including ratings and
liquidity within each asset class
Requires prior approval from Life and
Retirement for use of single investor
structures
Establishes Life and Retirement as
Blackstone's single largest client
•
•
Affordable
Housing Sale
Blackstone Real Estate Income Trust
(BREIT) will purchase from SAFG
Retirement Services, Inc. (and
certain of its affiliates)
$5.1B in cash, a portfolio of equity
and debt interests in operating
partnerships that own affordable
housing properties
Expected closing during 4Q21
subject to Blackstone's right to close
earlier upon at least one month's
prior notice to AIG
Divests assets no longer core to
AIG's long-term investment strategy
Accelerates use of FTCs
Transfer stewardship of these assets
going forward to a partner that has
the right expertise and is committed
to its stakeholders
AIG
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