In a recent announcement, American International Group, Inc. (AIG) revealed that it has completed the deconsolidation of Corebridge Financial for accounting purposes. This move came as a result of AIG waiving its right to majority representation on Corebridge Financial’s Board of Directors, leading to the resignation of AIG’s Executive Vice President, Chris Schaper, from the board.
Additionally, AIG’s suppliers saw a significant increase in sales of 6.06% year on year in the first quarter of 2024. Sequentially, sales grew by 9.81%. However, the company’s cost of sales deteriorated by -14.62% year on year, with a -2.73% decrease relative to the previous quarter.
These developments have both positive and negative implications for AIG. On one hand, the deconsolidation of Corebridge Financial could potentially open up new opportunities for the company to focus on its core business operations. On the other hand, the decline in cost of sales may raise concerns about the efficiency of AIG’s supply chain management.
Overall, it will be interesting to see how AIG navigates these changes and leverages them to drive growth and profitability in the future.
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