Corebridge & Equitable Announce $22 Billion All-Stock Merger, Creating Insurance Giant

Two major players in the retirement and insurance sector are set to combine forces in a massive, stock-based transaction. Corebridge Financial and Equitable Holdings have struck a definitive agreement for an all-stock merger, a move that values the combined entity at a staggering $22 billion. This deal, structured as a merger of equals, signals a significant consolidation in the financial services landscape, aiming to create a powerhouse with enhanced scale and a broader product portfolio for its clients.

The transaction will see Equitable shareholders receive a fixed exchange ratio of 0.35607 shares of Corebridge common stock for each share of Equitable common stock they own. Upon completion, Corebridge shareholders will own approximately 50.1% of the combined company, with Equitable shareholders owning about 49.9%. The new entity will retain the Corebridge Financial name and continue to be listed on the New York Stock Exchange under the ticker 'CRBG'. The leadership team will be drawn from both companies, with Kevin Hogan, current President and CEO of Corebridge, slated to become CEO of the combined firm.

This merger creates a formidable competitor with over $400 billion in total assets under management and administration. The combined company aims to leverage its expanded distribution network and complementary strengths in retirement services, life insurance, and asset management. The deal is expected to close in the second half of 2024, pending customary closing conditions, including regulatory approvals and approval by shareholders of both companies. The merger underscores ongoing pressure in the insurance industry to achieve greater scale and efficiency in a competitive market.