American International Group, Inc. [NYSE: AIG] disclosed that it is planning to utilize IPO to dump a 19.9% stake in its life and retirement business. AIG is looking at the interest of its rivals. The firm disclosed that presently IPO is still the ideal path ahead to increase profit for its investors and to place the business for more profit generation as an independent firm.
The firm is opting for an IPO because IPO enables AIG to keep the utmost flexibility about the operations of the business as well as the detachment process. AIG is currently in need of departure this year but that the scheduling could fall into the first quarter of 2022.
American International disclosed that the life and retirement unit, which sells insurance and annuities. The business has recorded $941 million in adjusted pre-tax income in Q1. It grows 57% from a year ago. But bonuses declined by 53% to $600 million.
CEO declared that he is anticipating that the general insurance business of AIG would continue to see a surge in revenue at that level in the rest of 2021. The business has recorded the 6% increase in gross dividend revenue to $10.7 billion in the quarter.
American International Group revealed that it has commenced reshaping its underwriting to make its main business more lucrative. The process is largely completed, and it is now turning to concentrate on expansion.