AIG shifting $150 billion to BlackRock
American International Group hired BlackRock to manage up to $60 billion of its general account and up to $90 billion in its life and retirement investment portfolio, the insurance company announced on Monday.
BlackRock will manage “certain liquid fixed income and private placement assets” and also will provide AIG with investment technology for both portfolios via Aladdin, the money manager’s risk-management system, the insurer said in a news release.
AIG said in the release that the shift of assets to BlackRock from internal management will be implemented in phases across its global operations over time.
The firm’s life and retirement portfolio totaled $247.7 billion as of Dec. 31 and the general account totaled $94.4 billion, AIG’s fourth-quarter earnings report showed.
AIG is preparing to separate its life and retirement unit into a stand-alone company, said Peter Zaffino, AIG’s chairman and CEO, in the release, noting that the partnership with BlackRock is “a significant milestone as our momentum continues toward the separation of the life and retirement business and the future state of AIG.”
He added that “the partnership with BlackRock creates both strategic and operating flexibility as we reposition asset management,” in the release.
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