AIG to sell life and retirement unit stake to Blackstone for $2.2 bln
July 14 (Reuters) - American International Group Inc said on Wednesday it would sell a 9.9% stake in its life and retirement business to a unit of Blackstone for $2.2 billion in an all-cash deal.
Shares of AIG rose about 5.3% to $48.85 in extended trading.
Blackstone Real Estate Income Trust will also acquire some of AIG's affordable housing assets for $5.1 billion, the companies said.
AIG will enter a long-term asset management relationship with Blackstone to manage $50 billion of life and retirement's investment portfolio, with that amount increasing to $92.5 billion over the next six years.
"(The deal) 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," Chief Executive Officer Peter Zaffino said.
(Reporting by Nivedita Balu; Editing by Devika Syamnath)
