BlackRock Wins Potential $150 Billion AUM Mandate from AIG

Posted on 03/28/2022

American International Group Inc. (AIG) inked a deal to award a massive mandate to BlackRock Inc. AIG hired BlackRock to manage liquid fixed income private placement assets valued up to US$ 60 billion. This US$ 60 billion is part of AIG’s core business. BlackRock is the world’s largest asset manager.

BlackRock will also manage up to US$ 90 billion of assets for AIG’s Life & Retirement business. AIG is preparing to split off its life & retirement business into a separate listed company. AIG’s life insurance and retirement services arm will be renamed Corebridge Financial from SAFG Retirement Services. After activist investor pressure, AIG first announced the decision to separate its life insurance and retirement businesses from its property and casualty operations in 2020

“Partnering with an asset manager like BlackRock represents a continuation of our strategy to work with world class organizations as we deliver on excellence at AIG,” Peter Zaffino, AIG chief executive, said in a statement.

AIG is seeking to lower costs and utilize BlackRock’s Aladdin risk and portfolio system. AIG units will start to use Aladdin through various parts of the organization.

In late 2021, AIG agreed to have Blackstone Inc. manage US$ 50 billion in life and retirement assets with the possibility of raising the total to US$ 92 billion over six years.

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