Skadden and Paul Weiss have scored roles in the merger of US insurers Corebridge and Equitable, in an all-stock deal that will form a $22bn retirement, life insurance and asset management company.
Skadden is advising Corebridge on the deal, which will create a company with more than $1.5trn in assets under management. The team is led by New York-based M&A and financial institutions partners Todd Freed and Patrick Lewis. Freed, who heads the firm’s insurance M&A practice, also advised Corebridge on the $560m sale of its UK life insurance business to Aviva in 2024.
Meanwhile, Paul Weiss acted for Equitable, with the team led out of New York by M&A partner Andrew Krause, M&A and private equity partner Adam Givertz and newly-minted firm chairman Scott Barshay.
Barshay stepped into the role last month after his predecessor, Brad Karp, stepped down as chair following the release of emails by the US Department of Justice detailing his ties to disgraced financier and convicted sex offender Jeffrey Epstein.
Equitable turned to Eversheds Sutherland late last year for its acquisition of Stifel Independent Advisors, in a deal that expanded its wealth management business and added $9bn in assets. Back in 2020, Willkie advised the company on a landmark agreement with Venerable Holdings to reinsure about $12bn in annuities.
Equitable CEO Mark Pearson said the Corebridge merger would create a company that would “benefit from a strong competitive position and accelerated growth across retirement, life and institutional markets, as well as asset and wealth management”.
Corebridge, which was carved out of AIG in 2022 and is valued at $11.6bn, according to Reuters, is one of the biggest providers of retirement and insurance products in the US. Equitable, which has a market capitalisation of around $10.7bn and owns asset manager AllianceBernstein, provides retirement and protection strategies.
Corebridge shareholders will own about 51% of the combined company, while Equitable investors will hold roughly 49%. Corebridge CEO, Marc Costantini, will lead the company post-merger, while Pearson will serve as executive chair.
Morgan Stanley is acting as financial advisor to Corebridge, while Goldman Sachs is advising Equitable.
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