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.”