Corebridge and Equitable: A Transformative Merger in Financial Services
Corebridge Financial and Equitable Holdings have announced a significant merger through an all-stock transaction valued at approximately $22 billion. This strategic alignment aims to create a formidable entity in the fields of retirement, life insurance, wealth management, and asset management.
The planned merger will establish a firm serving over 12 million clients with around $1.5 trillion in assets under management and administration. By integrating their operations, the companies seek to broaden distribution capabilities, diversify revenue streams, and foster consistent earnings across varying economic conditions.
Executives from both firms describe the merger as a pivotal move that unites complementary strengths. These include Equitable’s ties with global asset management company AllianceBernstein and Corebridge’s expertise in retirement and insurance services.
Mark Pearson, president and CEO of Equitable, commented, “This is a transformational transaction that brings together three outstanding franchises—Corebridge, Equitable, and AllianceBernstein—to create a diversified financial services company uniquely positioned to serve customers and deliver long-term value for shareholders.”
Pearson emphasized that this combination will enhance services offered to clients by providing more options and broader access to investment and retirement solutions, supported by a robust balance sheet.
Marc Costantini, president and CEO of Corebridge, stated that the merged entity would enjoy a strong competitive edge and accelerated growth in the retirement, life, and institutional markets, as well as in asset and wealth management. “With a world-class, multi-channel distribution network and an expanded offering of innovative products, we will create a balanced and resilient business well positioned to serve customers,” said Costantini.
He also noted that shareholders would benefit from immediate earnings per share accretion and growing cash generation projected to exceed 10% by 2028. Management anticipates that the merger will boost profitability by expanding the company’s mix of fee-based and spread income, alongside presenting cross-selling opportunities in retirement, insurance, and investment products.
The joint operation is expected to produce more than $5 billion in operating earnings and over $4 billion in cash flow annually on a pro forma basis. Additionally, the companies foresee annual expense synergies exceeding $500 million by the end of 2028, mainly achieved through the unification of technology, corporate functions, and vendor partnerships.
Under the terms, Corebridge shareholders will possess approximately 51% of the new entity, while Equitable investors will own about 49%. The firm will retain the Equitable brand and continue trading on the New York Stock Exchange under the EQH ticker. Marc Costantini will lead as the new president and CEO, with Equitable’s CFO Robin Raju taking on the CFO role. The headquarters will be in Houston, and the board will consist of 14 members equally appointed by both companies.
The merger, receiving unanimous approval from both companies' boards, is expected to close by the end of 2026, pending regulatory and shareholder approvals.