American International Group, Inc. ( AIG ) sold 120 million shares in Corebridge Financial Inc to Nippon Life for $3.8 billion.

That’s $31.47 per share. The stake represents 20% of Corebridge’s outstanding shares. AIG retains a 9.9% stake for two years post-closing.

AIG chief executive Peter Zaffino praised Nippon Life for “its leadership in the Japanese insurance market”.

“We are pleased to have Nippon Life become a strategic partner to Corebridge and believe they will add meaningful value as an investor,” he added.

This deal aligns with AIG’s strategy to reduce its stake in the life and retirement business, spun off as a separate company in 2022. AIG expects the transaction to close by the first quarter of 2025.

Last year, Corebridge Financial ( CRBG ) penned a deal to divest its U.K. life insurance business, operating as AIG Life Limited, to Aviva PLC ( AIVAF ) for £460 million in cash.

Price Action: AIG shares are trading higher by 0.89% at $79.60 and CRBG higher by 10.44% at $33.31 at the last check Thursday.

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