The share price of American Insurance Group (AIG (NYSE:AIG)) has declined marginally over the past month, following the release of its divestiture plans and on mixed analyst sentiment. So, will the company be able to beat the Street’s expectations and deliver stellar financials in the about-to-be-reported quarter? Read more to find out.Diversified insurance provider American Insurance Group, Inc. (AIG) is scheduled to release its second-quarter (ended June 2021) results after the market closes today. Though analysts expect the company’s earnings to have improved 77.3% for the quarter due to improved retention and higher rates, its revenues are expected to have declined 2.5% year-over-year. The unfavorable investor sentiment surrounding this stock is evident in its 2% decline over the past month.
On July 16, AIG sold its AIG Life and Retirement’s Retail Mutual Funds business, with assets worth $6.80 billion, to Touchstone Investments. AIG announced its plans to sell its subsidiary in February, saying the unit was no longer aligned with its core offerings. And on July 15, AIG sold a 9.9% stake in its Life and Retirement business to Blackstone Group (NYSE:BX) for $2.20 billion. AIG also entered into a long-term strategic asset management relationship with Blackstone, under which the latter is expected to manage $50 billion of AIG’s existing investment portfolio. The total assets managed are expected to increase to $92.50 billion over the next six years.
Regarding this, AIG President and CEO Peter Zaffino said, “Establishing a cornerstone partnership on several fronts with such a highly regarded organization as Blackstone validates the strength of our market-leading Life & Retirement business and provides it with additional growth opportunities, provides AIG with flexibility as we continue to work to separate Life & Retirement from AIG, and results in significant new capital for AIG to deploy to support our capital management priorities.”