AIG Taps CVC to Put Its Investment Engine in a Higher Gear

American International Group, Inc. AIG entered a strategic investment partnership with CVC, a major global private markets firm. Under this arrangement, AIG plans to allocate a meaningful portion of its investment capital to strategies managed by CVC. The focus is primarily on credit-related investments and private equity secondaries. Rather than making one-off investments, AIG is setting up long-term, structured mandates that allow CVC to manage capital on its behalf across multiple strategies.

AIG is expected to deploy almost $3.5 billion over time through CVC-managed vehicles, with initial allocations expected to begin in 2026. A key element of the deal is AIG becoming a cornerstone investor in CVC’s private equity secondaries evergreen platform, contributing around $1.5 billion.

AIG will also use separately managed accounts (SMAs) to gain exposure to diversified private and liquid credit assets, tailored specifically to its needs, allocating around $2 billion. The partnership seems designed to be scalable and flexible, allowing allocations to grow as performance and market conditions evolve.

This move highlights how large insurers like AIG are increasingly shifting away from traditional fixed-income investments toward alternative assets in search of higher, more stable long-term returns. It also signals confidence in private credit and secondaries as attractive asset classes in a higher-rate but uncertain economic environment.

For CVC, which boasts an AUM of €201 billion, securing a long-term partnership with a global insurer enhances its credibility and strengthens its position in institutional capital markets. The deal provides sizable, sticky capital, generating recurring fees and creating opportunities to scale its investment platforms.

For AIG, the partnership will likely improve portfolio diversification, enhance yield potential and support long-term returns. Its trailing 12-month return on equity stands at 9.09%, below the industry average of 15.14%. Customized investment structures will also help manage risk more efficiently.

AIG’s Zacks Rank & Estimates

AIG currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings is pegged at $7.02 per share, which witnessed two upward estimate revisions in the past week against no movement in the opposite direction. It indicates 41.8% year over year growth. However, the consensus mark for revenues is pegged at $27.25 billion, signaling a 16.9% decline.

AIG beat earnings estimates in all the past four quarters, with an average surprise of 15%.

American International Group, Inc. Price, Consensus and EPS Surprise

American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote

Key Picks to Consider

Investors interested in the broader Finance space may look at some better-ranked players like Assurant, Inc. AIZ, CNO Financial Group, Inc. CNO and Principal Financial Group, Inc. PFG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Assurant’s current-year earnings is pegged at $19.48 per share, predicting a 7.1% year-over-year increase. It witnessed two upward estimate revisions in the past 30 days against no movement in the opposite direction. AIZ beat earnings estimates in all the past four quarters, with an average surprise of 22.7%.

The Zacks Consensus Estimate for CNO Financial’s current-year earnings is pegged at $4.14 per share, which indicates 4.3% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction during the past 60 days. CNO beat earnings estimates in each of the past four quarters, with an average surprise of 6.5%.

The consensus mark for Principal Financial’s current-year earnings is pegged at $8.30 per share, indicating a 19.1% year-over-year improvement. It has witnessed one upward estimate revision against none in the opposite direction during the past 30 days. Furthermore, the consensus estimate for PFG’s 2025 revenues is pegged at $15.17 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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