Brookfield Reinsurance snaps up US insurer for $5.1bn

Brookfield Asset Management's re/insurance business is acquiring a Texas-based multi-line insurer in an all-cash transaction valued at approximately $5.1 billion.

Brookfield Reinsurance will acquire American National, which offers a broad line of products and services, including life, annuities, health and credit insurance, pension products and property and casualty insurance for personal lines, agribusiness and certain commercial exposures. The company operates in all 50 US states.

Brookfield Asset Management Reinsurance Partners is focused on providing capital-based and annuity solutions for insurance and reinsurance companies, and pension risk transfer products for pension plan sponsors.

The merger is expected to close in the first half of 2022. It will be funded by Brookfield Reinsurance through a combination of committed debt and equity financing.

Sachin Shah (pictured), chief executive officer of Brookfield Reinsurance, said: “The acquisition of American National represents a significant milestone in the continued expansion of our insurance business. American National’s management team has a strong track record of stable growth and disciplined underwriting. We are excited to partner with them, and the dedicated American National employee base and distribution partners, as we look to further grow the business and maintain a strong franchise for the benefit of all stakeholders.”

Jim Pozzi, president and chief executive officer of American National, added: “This is an energizing moment in American National’s history. Our two companies share a long-term view of building strong, enduring businesses. Brookfield Reinsurance has been very clear: they want us to continue to grow our business, together with our leadership team and our excellent team of employees and distribution partners. I would like to thank our board of directors, particularly our strategic opportunities committee of independent directors, which conducted a thorough review of a range of strategic alternatives and possible business opportunities to maximize value for our stockholders. The transaction provides clear and immediate value for our stockholders at an attractive premium.”

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