AIG Completes Sale of Stake in Life & Retirement Unit to Blackstone

American International Group and Blackstone said they have closed on the previously disclosed transaction for Blackstone to acquire a 9.9% equity stake in AIG’s Life & Retirement business and for Blackstone to manage an initial $50 billion of Life & Retirement’s existing investment portfolio has closed.

In announcing the deal in July, AIG and Blackstone said the private equity firm would pay $2.2 billion in cash for 9.9% of the unit that sells insurance and annuities,

AIG Plans Sale of Life Business to Blackstone and in IPO

AIG has said it plans to use an initial public offering to to sell an additional 19.9% of its life and retirement business.

AIG is splitting off its life insurance and retirement businesses from its property/casualty operations.

Last week, AIG announced several leadership changes that it says strengthen the organization to deliver on its main priorities including the separation of the Life & Retirement business.