Equitable and Corebridge Financial Merger to Create Financial Services Giant
Equitable Holdings and Corebridge Financial have agreed to merge in an all-stock transaction valued at approximately $22 billion. This merger will create a comprehensive financial services platform that combines retirement, life insurance, wealth management, and asset management services. The merged company will serve over 12 million customers and manage around $1.5 trillion in assets. It will operate under the Equitable name and trade under the ticker “EQH,” with its headquarters located in Houston.
The merger demonstrates a trend among insurers to achieve greater scale, diversify revenue sources, and reinforce their market presence in sectors like retirement and wealth management. The strategic integration of Corebridge's insurance operations with Equitable's fee-based and asset management services aims to establish a more balanced and resilient business structure.
Under the agreement's terms, Corebridge shareholders will exchange their shares for an equal number in the new parent company, while Equitable shareholders will receive 1.55516 shares per share held. Post-merger, Corebridge shareholders will own approximately 51% of the new company, whereas Equitable shareholders will hold about 49%.
The leadership of the newly formed company will feature Marc Costantini, Corebridge’s CEO, as President and Chief Executive Officer, while Equitable CEO Mark Pearson will take on the role of Executive Chair. Equitable CFO Robin Raju will assume the position of Chief Financial Officer.
The transaction is projected to enhance earnings per share and cash flow immediately, with expected earnings accretion exceeding 10% by 2028. The companies aim for more than $500 million in run-rate expense synergies during the same period. The combined entity is forecasted to generate over $5 billion in operating earnings and more than $4 billion in cash annually.
From a strategic standpoint, the merger will integrate Corebridge, Equitable, and AllianceBernstein into a coherent platform, enhancing distribution, product offerings, and asset origination capacity. The companies plan to transition over $100 billion of Corebridge assets to AllianceBernstein over time, bolstering its asset management operations.
The boards of both organizations have unanimously approved the transaction, which is expected to conclude by 2026, pending regulatory approvals and shareholder consent. In statements about the merger, Equitable CEO Mark Pearson expressed enthusiasm for the enhanced capabilities and value offerings for clients and shareholders. Corebridge CEO Marc Costantini highlighted the merger’s potential to strengthen their competitive position and drive growth in various markets. Satoshi Asahi, President of Nippon Life Insurance Company, noted the merger’s strategic advantages and affirmed Nippon's continued role as a long-term strategic investor.