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On July 16, AIG sold its AIG Life and Retirement’s Retail Mutual Funds business, with assets worth $6.80 billion, to Touchstone Investments. AIG announced its plans to sell its subsidiary in February, saying the unit was no longer aligned with its core offerings. And on July 15, AIG sold a 9.9% stake in its Life and Retirement business to Blackstone Group (NYSE:BX) for $2.20 billion. AIG also entered into a long-term strategic asset management relationship with Blackstone, under which the latter is expected to manage $50 billion of AIG’s existing investment portfolio. The total assets managed are expected to increase to $92.50 billion over the next six years.
Regarding this, AIG President and CEO Peter Zaffino said, “Establishing a cornerstone partnership on several fronts with such a highly regarded organization as Blackstone validates the strength of our market-leading Life & Retirement business and provides it with additional growth opportunities, provides AIG with flexibility as we continue to work to separate Life & Retirement from AIG, and results in significant new capital for AIG to deploy to support our capital management priorities.”
