Ontario, Canada (CU)_ AIG or American International Group has established a strategic agreement with BlackRock. Under the terms of the deal, BlackRock would manage some fixed-income and private-placement assets. As part of the deal, BlackRock will manage up to US$60 billion of AIG’s worldwide investment portfolio and up to US$90 billion of AIG’s Life & Retirement investment portfolio. In addition, AIG and Life & Retirement will use BlackRock’s Aladdin platform to handle their investments.
Peter Zaffino, chairman and CEO of AIG, expressed hopes over the partnership. He said, “Partnering with an asset manager like BlackRock represents a continuation of our strategy to work with world-class organizations as we deliver on excellence at AIG”.
The CEO added, “BlackRock has an outstanding performance track record and world-class risk analytics through its Aladdin platform. BlackRock’s global scale makes this a significant long-term value creation opportunity for our stakeholders. This is another important milestone as our momentum continues toward the separation of our Life & Retirement business and the future state of AIG.”
Zaffino expressed optimism over the collaboration. He said, “For Life & Retirement, the partnership with BlackRock creates both strategic and operating flexibility as we reposition asset management and prepare the business to be a standalone company.” According to the insurer, the agreements with BlackRock will be implemented in phases throughout AIG’s global businesses.
Rob Kapito, president of BlackRock, expressed delight over the strategic alliance. He said, “BlackRock is honored to have been selected to serve AIG as a strategic partner. We look forward to leveraging our investment expertise, scale and technology capabilities for the benefit of all of AIG’s stakeholders. I have enormous respect and admiration for AIG, and I am confident in the long-term value BlackRock will deliver as we embark on this journey together.”
