Corebridge Financial and Equitable Holdings Merge: A $22 Billion Transaction

Corebridge Financial and Equitable Holdings have agreed to merge through an all-stock transaction valuing the combined company at approximately $22 billion. This merger will result in an entity managing and administering $1.5 trillion in assets for over 12 million clients.

The business segments of the merged company will encompass individual and group retirement, asset management, wealth management, life insurance, and institutional markets. By integrating Corebridge's and Equitable's distribution channels, the business model aims to diversify, enhancing opportunities for cross-selling products. Corebridge’s assets, exceeding $100 billion, will move progressively to AllianceBernstein as part of an existing relationship.

Financial projections indicate that the newly formed firm anticipates generating operating earnings above $5 billion and a cash flow exceeding $4 billion. Projections also foresee earnings per share and cash flow increasing by over 10% by 2028, with an adjusted return on equity expected to surpass 15% by 2027.

Transaction Structure and Leadership

The transaction involves exchanging each Corebridge share for one share in the new parent company, while each Equitable share will convert to 1.55516 shares. Post-merger, Corebridge shareholders are expected to own around 51% of the new company, with Equitable shareholders holding approximately 49%.

The leadership of the merged organization will include Marc Costantini, serving as the president and CEO, and Robin Raju from Equitable taking on the CFO role. The board of directors will be composed of seven members appointed by each firm.

The merger, expected to finalize by the end of 2026, is contingent on obtaining necessary regulatory approvals and shareholder consent. The new organization will operate under the Equitable name, trading under the ticker symbol 'EQH' on the New York Stock Exchange, with headquarters located in Houston, Texas.