“the business accelerated certain actions and is now expected to deliver run rate savings of over $100 million by the end of 2022, ahead of our original schedule”

In context

“and that attempting to complete an IPO at that time would not have been in the best interest of AIG, Corebridge or our stakeholders. As a result, we decided to defer the IPO and revisit timing in the third quarter. We knew that there would be limited open windows and remain committed to completing a transaction as soon as we believed an appropriate opportunity was available. Throughout the summer, our team did a remarkable job and worked diligently on the operational separation of Corebridge from AIG as well as to prepare the business for a successful IPO. As we noted on our last call, we had already increased the targeted savings program at Corebridge from an initial range of $200 million to $300 million to $400 million within 2 to 3 years. With the additional time available pre-IPO, the business accelerated certain actions and is now expected to deliver run rate savings of over $100 million by the end of 2022, ahead of our original schedule. We were also prepared to secure the capital structure of Corebridge prior to the IPO and access the debt markets in late summer during a short window when conditions became more favorable. In August, Corebridge issued $1 billion of hybrid debt securities and in early September drew down on a $1.5 billion bank facility to complete its initial capital structure. Using part of the net proceeds from these debt transactions, Corebridge closed out the remaining $1.9 billion due to AIG under a promissory note. Throughout this time, we also engage in continuous discussions with our financial and other advisers about equity market conditions, investor sentiment and our ability to execute the IPO in a complicated market. While equity markets remain uncertain, volatility was not as extreme lead”