Corebridge Financial and Equitable Holdings have agreed to combine in an all-stock merger that values the combined company at about $22 bn.
The deal will create a larger retirement, life, wealth, and asset management group with broader distribution, more scale, and a more diversified business mix.
Both boards approved the transaction unanimously. A new parent company will sit above the combined business.
The merged company is expected to hold $1.5 tn in assets under management and administration across individual and group retirement, asset management, wealth management, life insurance, and institutional business.
Under the agreement, each outstanding Corebridge common share will be exchanged for 1.0000 shares of the new parent company.
Each outstanding Equitable common share will be exchanged for 1.55516 shares of the new parent company’s stock.
The companies expect to close the transaction by the end of 2026, subject to standard closing conditions, including regulatory approvals and shareholder approval at both firms.
After closing, Corebridge shareholders will own about 51% of the combined company, while Equitable shareholders will hold about 49%.
Once completed, the merged business will operate under the Equitable name and brand and trade on the New York Stock Exchange under the EQH ticker.
Marc Costantini, current president and chief executive of Corebridge, will lead the new company as president and chief executive. Robin Raju, Equitable’s chief financial officer, will become chief financial officer of the combined group.
The new company will be headquartered in Houston, Texas, and will have a 14-member board. Each company will designate seven directors. The full board lineup will be announced before the deal closes.
Costantini and Mark Pearson will sit on the board, with Pearson serving as executive chair. Alan Colberg, chair of the Corebridge board, will become lead independent director.
The combination will also expand investment capability across multiple asset classes. Over time, the group expects to shift more than $100 bn of Corebridge general and separate account assets to AllianceBernstein, Equitable’s asset management arm.
Pearson, Equitable’s president and chief executive, called the transaction transformative and said it brings together Corebridge, Equitable, and AllianceBernstein into a diversified financial services company built to serve customers and create long-term shareholder value.
He said the merger combines complementary scale and capabilities, giving clients more choice, broader access to investment and retirement products, and the backing of a larger balance sheet. He also said he looks forward to working closely with Costantini and the combined board as the new company takes shape.
The merged company is expected to produce more than $5 bn in operating earnings and generate more than $4 bn in cash.
Costantini said the merged group will benefit from a strong competitive position and faster growth across retirement, life, institutional markets, asset management, and wealth management.
He said the company will have a world-class multi-channel distribution network and a broader range of products, helping it build a more balanced business and serve customers more effectively.
He also said the company will keep supporting financial professionals and institutions helping individuals plan, save, and build more secure financial futures.
On shareholder returns, he said the deal is expected to be immediately accretive to earnings per share and cash generation, with accretion rising to more than 10% by the end of 2028.
Satoshi Asahi, president of Nippon Life Insurance Company, said the proposed merger is strategically compelling and could create a more competitive and durable platform for long-term shareholder benefit.
Corebridge was advised by Morgan Stanley on financial matters, Skadden, Arps, Slate, Meagher & Flom on legal matters, and Joele Frank, Wilkinson Brimmer Katcher on strategic communications.
