- July 15, 2021
- Posted by: Stratford Team
- Category: Business
American International Group Inc. and Blackstone Group Inc. said late Wednesday they have reached multibillion-dollar deals giving the private-equity giant a major foothold in life insurance and annuities as well as affordable housing.
stock rallied 6% after the announcement, while shares of Blackstone
The companies said they have reached a deal for Blackstone to acquire a 9.9% equity stake in the insurance company’s life and retirement business for $2.2 billion.
As part of the all-cash deal, Blackstone will manage an initial $50 billion of AIG’s life and retirement’s investment portfolio, with the amount rising to $92.5 billion in the next six years, the companies said.
Both transactions are expected to close by the end of the third quarter, and Jon Gray, Blackstone’s chief operating officer, will join AIG’s life…