U.S. insurer American International Group said on Thursday it would sell a 20% stake in Corebridge Financial to Japan’s Nippon Life Insurance for $3.8 billion.

The deal is part of AIG’s efforts to sell down its holdings in the life and retirement business, which it had listed as a separate company in 2022 following years of pressure from activist investors.

AIG had a nearly 53% stake in Corebridge before the latest deal, according to regulatory filings. Peter Zaffino, CEO at AIG, has committed to sell the company’s remaining ownership in Corebridge, but the firm agreed to maintain a 9.9% stake for two years after the deal closes.

The sale would help Nippon Life boost its presence in the U.S. market. With 15 million clients, the company is one of the biggest life insurers in Japan, and also operates in Australia, India, Myanmar, China, Thailand and Indonesia.

J.P. Morgan Securities advised AIG on the deal, which is expected to close by the first quarter of 2025.

Reuters