November 30, 2022

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Brookfield reinsurance unit to purchase American Nationwide for $5.1 bln

Aug 9 (Reuters) – Brookfield Asset Management Inc’s (BAMa.TO) reinsurance unit has agreed to acquire insurer American Nationwide Group Inc (ANAT.O) for about $5.1 billion in an all-income deal, the companies said on Monday.

Began in 1905 by William Lewis Moody Jr., American Nationwide is vast majority-owned by the founder’s family, which controls the corporation via a assortment of trusts and holdings.

The business offers quite a few products and solutions, together with lifetime, well being, and assets and casualty (P&C) insurance policy, as effectively as annuities, in accordance to its internet site.

The potential deal comes as U.S. insurers are stepping up gross sales of annuities and other cash-intense property amid a surge in fascination from new and recognized non-public fairness customers hungry to raise the total of money they take care of.

American Global Group (AIG.N), for illustration, plans to use an preliminary general public featuring to provide part of its lifestyle and retirement business, even though Blackstone Team (BX.N) final thirty day period agreed to obtain a sizeable stake. read far more

Canada’s Brookfield claimed in Oct it would obtain a stake in American Fairness Expense Lifestyle Holding Co (AEL.N) and grant the fixed index annuity supplier entry to Brookfield’s alternative property.

American Nationwide shareholders will obtain $190 per share in income, representing a top quality of about 10% to the insurer’s closing price tag on Friday. https://on.wsj.com/3lH84at

Reuters described in Could that American Nationwide was discovering options which includes a sale of the organization, citing persons familiar with the issue.

The potential deal follows corporate benefits that exhibit a return to hefty profits for insurers following they took a hit last calendar year as promises rose because of to the economic disruption induced by the COVID-19 pandemic.

Brookfield designs to retain American National’s headquarters in Galveston, Texas, and maintain its operational hubs close to the country.

The merger is envisioned to close in the initially half of 2022.

RBC Funds Markets is serving as economic adviser to Brookfield Reinsurance, although Citi is American National’s financial adviser.

Reporting by Noor Zainab Hussain in Bengaluru editing by Vinay Dwivedi

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