Deal unites firms with 12M customers and $1.5T AUM/AUA, targeting growth, scale and $500M synergies.
Corebridge Financial and Equitable Holdings have agreed to combine in an all-stock transaction valued at about $22 billion, a move the firms say will establish a scaled player spanning retirement, life insurance, wealth management and asset management.
The merger is expected to create a company serving more than 12 million clients with roughly $1.5 trillion in assets under management and administration. The combined business is designed to expand distribution reach, diversify revenue streams and position the organization for steadier earnings across market cycles.
Executives framed the tie-up as a transformational step that brings together complementary capabilities, including Equitable’s relationship with global asset manager AllianceBernstein and Corebridge’s retirement and insurance franchises.
“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,” said Mark Pearson, president and CEO of Equitable.
Pearson added that combining complementary capabilities and scale will enhance what is delivered for clients including more choice, broader access to investment and retirement solutions and the strength of an industry leader with a stronger balance sheet.
Marc Costantini, president and CEO of Corebridge, added that the combined company will benefit from a strong competitive position and accelerated growth across retirement, life and institutional markets, as well as 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,” he said. “Together, we will continue to support financial professionals and institutions in helping individuals plan, save for and achieve secure financial futures. Importantly, upon closing, this transaction is expected to deliver compelling value to shareholders, including immediate accretion to earnings per share and cash generation, increasing to over 10% by the end of 2028.”
Financial impact and synergies
The firms’ management expects the deal to enhance profitability through a broader mix of fee-based and spread income while also driving cross-selling opportunities across retirement, insurance and investment offerings.
The combined company is projected to generate more than $5 billion in operating earnings and over $4 billion in cash flow annually on a pro forma basis.
The firms also anticipate more than $500 million in annual expense synergies by the end of 2028, primarily from consolidating technology systems, corporate functions and vendor relationships.
Under the agreement, shareholders of Corebridge will own about 51% of the merged entity, with Equitable investors holding roughly 49%. The company will operate under the Equitable brand and continue trading on the New York Stock Exchange under the ticker EQH.
Costantini is set to become president and CEO of the combined organization, while Equitable CFO Robin Raju will assume the chief financial officer role. The new firm will be headquartered in Houston and governed by a 14-member board split evenly between directors designated by each company.
The transaction, unanimously approved by both boards, is expected to close by the end of 2026, subject to regulatory and shareholder approvals.