UBS Upgraded Corebridge Financial (CRBG) Stock to Neutral

Corebridge Financial, Inc. (NYSE:CRBG) is one of the Best Large Cap Value Stocks to Invest In. UBS upgraded the company’s stock to “Neutral” from “Sell” with a price objective of $37, up from the prior target of $28, as reported by The Fly. The firm sees the company’s shares as fairly valued after the variable annuity reinsurance deal with Venerable.

A close-up of a person’s hands counting a stack of coins, illustrating the importance of retirement solutions.

UBS believes that by reinsuring its entire $51 billion individual VA business, Corebridge Financial, Inc. (NYSE:CRBG) monetizes its most complex, low-multiple business for $2.1 billion of distributable proceeds, and also validates as well as eliminates the fundamental downside risk the firm flagged. Overall, UBS noted that the deal significantly improves its view of Corebridge Financial, Inc. (NYSE:CRBG)’s value creation strategy and willingness to adapt.

Corebridge Financial, Inc. (NYSE:CRBG)’s top management highlighted that the transaction offers significant value. The company plans to use proceeds to accelerate its capital management objectives, which include a substantial majority returned through share repurchases, while the balance will be used to support organic growth. Notably, the $51 billion of total account value consists of $5 billion of General Account AV (reinsured 100% on a coinsurance basis) as well as $46 billion of Separate Account AV (reinsured on the modified coinsurance basis).

Corebridge Financial, Inc. (NYSE:CRBG) provides retirement solutions and insurance products.

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Disclosure: None. This article is originally published at Insider Monkey.