American International Group has brokered a deal with BlackRock to manage up to $150bn of its fixed-income and private-placement assets.
As per the agreement, BlackRock will manage up to $60bn of the insurer’s global investment portfolio and as much as $90bn of its life and retirement investment portfolio.
Furthermore, the asset manager’s Aladdin platform will offer investment management technology for both AIG and its life and retirement unit.
AIG chairman and CEO Peter Zaffino said: “Partnering with an asset manager like BlackRock represents a continuation of our strategy to work with world class organisations as we deliver on excellence at AIG.
“BlackRock has an outstanding performance track record and world class risk analytics through its Aladdin platform.”
“For Life & Retirement, the partnership with BlackRock creates both strategic and operating flexibility as we reposition asset management and prepare the business to be a standalone company,” Zaffino added.
The American insurance giant noted that the deal will with BlackRock will be implemented in phases across its global operations.
BlackRock president Rob Kapito said: “BlackRock is honoured to have been selected to serve AIG as a strategic partner. We look forward to leveraging our investment expertise, scale, and technology capabilities for the benefit of all of AIG’s stakeholders.
“I have enormous respect and admiration for AIG, and I am confident in the long-term value BlackRock will deliver as we embark on this journey together.”