(Reuters) – Brookfield Asset Management Inc.'s Brookfield Reinsurance Unit has agreed to buy insurer American National Group Inc. for about $ 5.1 billion in a cash deal, the companies said on Monday.
The merger is expected to close in the first half of 2022.
Started in 1905 by William Lewis Moody Jr., American National is majority owned by the founder's family, who control the company through a series of trusts and holdings.
The company offers several products, including life, health and property / non-life insurance, as well as annuities, according to its website.
The potential deal comes as US insurers increase sales of annuities and other capital-intensive assets amid an increase in interest from new and established private equity buyers who are eager to increase the amount of money they manage.
The American International Group, for example, plans to use an IPO to sell part of its life and pension, while the Blackstone Group agreed last month to buy a significant stake.
Canada's Brookfield announced in October that it would acquire a stake in American Equity Investment Life Holding Co. and grant the fixed index rate provider access to Brookfield's alternative assets.
American National shareholders will receive $ 1
Reuters reported in May that American National was investigating options including a sale of the company, citing insiders.
The potential deal follows corporate results showing a return to real profits for insurers after they were hit last year when receivables rose due to the economic disruption caused by the COVID-19 pandemic.
Brookfield plans to maintain the U.S. National Headquarters in Galveston, Texas, and maintains its operational hubs around the country.
RBC Capital Markets acts as financial advisor to Brookfield Reinsurance, while Citi is American National's financial advisor. Catalog