Brookfield Asset Management Reinsurance Partners (Brookfield Reinsurance) has announced today (August 09) that it will acquire American National Group (American National) for approximately $5.1 billion in cash.
As part of the definitive merger agreement, all issued and outstanding shares of American National common stock will be converted into the right to receive $190.00 in cash at closing of the merger. This represents a 55% premium to the unaffected share price of $122.56 on May 11, 2021, and a 24.7% premium over American National’s 30-day volume-weighted average price as of August 06, 2021.
“This is an energizing moment in American National’s history. Our two companies share a long-term view of building strong, enduring businesses,” said Jim Pozzi, American National president and CEO. “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.”
The merger, which is expected to close in the first half of 2022, received unanimous approval from American National’s board of directors. Once finalized, Brookfield Reinsurance plans to keep American National’s headquarters in Galveston, Texas and its presence in League City, Texas, as well as its operational hubs in Springfield, Missouri and Albany, New York.
Sachin Shah, CEO of Brookfield Reinsurance, commented: “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.”
The deal remains subject to closing conditions, including antitrust clearance and receipt of insurance regulatory approvals. Brookfield Reinsurance was advised by RBC Capital Markets and Skadden, Arps, Slate, Meagher & Flom LLP, while American National was advised by Citi, Sidley Austin LLP , and Greer, Herz & Adams LLP.