The share price of American International Group Inc. (AIG) grew 7.52% in after-hours trading on Wednesday. The stock of AIG fell -0.68% to trade at $46.41 at the end of the regular trading session. The price of AIG shares ranged from $46.02 to $47.35. A total of 2.67 million shares of AIG stock were traded, which was below the daily average of 4.21 million shares over 100 days.

The shares of AIG have fallen -0.81% over the past five days, as well as by -9.18% over the past month. At present, AIG’s dividend yield stands at 2.76%. It currently trades at a price to book ratio of 0.65 and a price to cash flow ratio of 65.72. With a definitive agreement to sell some of its assets, AIG stock price is rising.

Which assets are being sold by AIG?

American International Group is one of the world’s leading insurance companies. The AIG member companies provide a broad range of insurance, retirement solutions, and other financial services to customers in about 80 countries. Businesses and individuals can take advantage of AIG’s wide range of products and services, which include protection of assets, risk management, and retirement savings.

American International Group yesterday announced that it has reached to a definitive agreement with Blackstone (NYSE:BX).

• The agreement calls for Blackstone to buy a 9.9% stake in AIG’s Life & Retirement business in an all-cash deal at $2.2 billion.
• Additionally, with this agreement, Blackstone will be able to manage existing investment portfolios of AIG through a long-term strategic asset management relationship.
• In the immediate aftermath of the investment, Blackstone will manage about $50 billion of Life & Retirement’s portfolio; that amount will grow to $92.5 billion in the six years to follow.
• Blackstone’s Jon Gray, President and Chief Operating Officer, will become a member of the Life & Retirement Board of Directors, when the transactions close simultaneously by the third quarter of 2021.
• Additionally, AIG and Blackstone Real Estate Income Trust (BREIT) also made an announcement today that they have reached a definitive agreement.
• BREIT is an investment vehicle affiliated with Blackstone, and under the agreement, it will acquire AIG’s interest in the US affordable housing portfolio for an all-cash transaction of approximately $5 billion.
• It is expected that this transaction will close during the fourth quarter of 2021, subject to customary closing conditions.

How will this help AIG?

Having an investment with such a highly regarded organization as Blackstone will allow AIG to set up a cornerstone partnership on several fronts, validating AIG’s leadership position in Life & Retirement and providing it with additional opportunities for growth. As a result, AIG will be able to separate Life & Retirement from AIG, and will have a significant amount of additional capital at its disposal to apply to its capital management needs.