Bloomberg – AIG Defies Punishing Run for IPOs With Year’s Biggest
Sep 9, 2022
The biggest US initial public offering this year appears to be designed to withstand turbulent times, meaning it should snap an eight-month drought in listings from the largest firms in the pipeline. American International Group Inc. is offering up to $1.92 billion of shares of its life and retirement business, Corebridge Financial Inc., according to a filingthis week, terms that indicate marketing has formally begun. After delaying the deal because of market volatility, the firm stuck with a new timeline telegraphed a month ago.
The IPO terms value Corebridge at a 17% premium to its US listed peers on a 12-month historical price-to-book basis, analysts at The Edge Consulting Group wrote in a note. The Edge also identifies Jackson Financial Inc., Athene Holding Ltd and Brighthouse Financial Inc. as valuation comparables. “Typically, these kinds of businesses, and insurance as a sector, is defensive in nature,” The Edge founder Jim Osman told Bloomberg. “However, they could feel the heat from an economic slowdown as the premiums collected are invested across various asset classes.”