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Blackstone to Buy $7.3 Billion of AIG Housing, Insurance Assets

  • It also agrees to manage initial $50 billion of AIG portfolio
  • Private equity firms drawn to insurance for capital stream
American International Group Inc. (AIG) Offices Ahead Of Earnings Figures

Photographer: Michael Nagle/Bloomberg

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American International Group Inc. said it agreed to sell a 9.9% equity stake in its life and retirement business to Blackstone Group Inc. for $2.2 billion in cash.

The insurer and the private equity giant agreed to a “long-term strategic asset management relationship” for an initial $50 billion from the life and retirement portfolio, AIG said Wednesday in a statement. AIG will also sell affordable-housing assets to Blackstone for $5.1 billion.