Corebridge Financial (CRBG, Financial) is a life and retirement company that was partially spun off from American International Group (AIG) through an initial public offering in September 2022. Corebridge has extensive, long-standing relationships with many of the largest financial institutions to sell various retirement products. It is one of the largest retirement service providers to the education market through VALIC Financial Advisors. It also operates a high-performing, seasoned life insurance business. The market is valuing the company as a variable annuity provider despite its much more diversified and stable earnings stream. Part of the discount is due to the lack of liquidity and an overhang from AIG’s significant ownership, which will eventually be brought to market. Trading at around five times our estimate of normalized distributable cash flow, the stock is highly attractive to us, and we are willing to wait for the ownership overhang to resolve itself.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund second-quarter 2023 commentary.
