Equitable and Corebridge to Merge in $22B All-Stock Deal

Equitable and Corebridge Announce Landmark Merger

Insurers Equitable and Corebridge have officially announced a merger through an all-stock transaction. This deal will establish a new U.S. financial services leader in retirement, life insurance, and asset management, with a combined value of $22 billion.

Overview of the Combined Entity

The newly formed company will manage over $1.5 trillion in assets under management and administration while serving a customer base exceeding 12 million. This merger highlights a strategic push for greater scale and competitive strength in the wealth and retirement sectors, reflecting a broader consolidation trend among insurers.

Market Reaction and Financial Impact

Following the announcement, Corebridge shares increased by 2.4% in premarket trading. The agreement stipulates that Corebridge shareholders will hold approximately 51% of the combined company. The deal, targeted for completion by the end of 2026, is anticipated to boost earnings by over 10% by the end of 2028.

Leadership and Future Outlook

The combined company will operate under the Equitable name and be headquartered in Houston, Texas. Corebridge CEO Marc Costantini is set to lead the new entity as CEO, with Equitable CEO Mark Pearson serving as executive chair. The merger is positioned to accelerate growth across all key markets.

FAQ

Q: What is the total value of the merger between Equitable and Corebridge?
A: The all-stock deal creates a combined company valued at $22 billion.

Q: What will the new company be named?
A: The combined entity will be headquartered in Houston, Texas, and will operate under the Equitable name.

Source: Reuters via Investing.com