AIG considered $10 billion deal to buy life insurer: Report
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American International Group Inc. had been in negotiations in 2017 to buy Voya Financial Inc., a life insurance and financial services company, for more than $10 billion before talks fell apart in November, according to a Bloomberg report.
If true, the report could be a strong indicator that CEO Brian Duperreault may be in the market for a large acquisition or at least willing to consider such a move.
AIG through a spokeswoman declined to comment on the report.
Mr. Duperreault said during the company’s second-quarter conference call that AIG would consider acquisitions that are “strategically complementary,” and noted the small and middle market.
Since joining AIG in in May 2017, he has conducted a campaign of cost-cutting while looking to refocus the company’s business mix.
Voya in December struck a deal to sell $54 billion of volatile insurance obligations to investors including Apollo Global Management L.L.C., sending the insurer’s shares to a record high, the Bloomberg report said, adding AIG wasn’t aware of those plans while negotiating its deal last year.
Voya’s December deal with Apollo, private equity firm Crestview Partners L.P. and Reverence Capital Partners L.L.C. is expected to generate $500 million immediately, which will be used for buybacks, and a $2.3 billion after-tax reduction to shareholders equity, the life insurer said.
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