Brookfield Reinsurance sets closing date for AEL acquisition

M&A swoop the latest following another mega-deal in November

Brookfield Reinsurance sets closing date for AEL acquisition


By Kenneth Araullo

Brookfield Reinsurance, along with American Equity Investment Life Holding Company, announced that their anticipated acquisition deal is slated to finalize after market close on May 2, 2024.

The deal, initially publicized on July 5, 2023, marks a significant expansion for Brookfield Reinsurance in the U.S. financial sector as it is set to acquire the American Equity Investment Life Holding Company (AEL).

A crucial step toward the acquisition was completed earlier this month next month, with the Iowa Insurance Division holding a regulatory hearing on April 5, to discuss the terms and implications of the acquisition. This meeting paved the way for the final stages of the deal.

“We are excited to move toward closing this transaction and begin the work of building AEL into a leader in the US annuity markets,” Sachin Shah, the chief executive officer of Brookfield Reinsurance, said.

He also emphasized the commitment to leveraging this acquisition to benefit the Des Moines community and enhance value for AEL’s policyholders and employees.

In a related development, Brookfield Reinsurance's recent acquisition activities include the purchase of Argo Group, which was finalized in November for $1.1 billion. Following the acquisition, Argo Group was re-domiciled as a U.S. corporation and rebranded as Argo Group International Holdings, Inc., focusing on specialty insurance products in the property and casualty market.

Jessica Snyder has been appointed CEO of the newly named Argo following the retirement of Thomas Bradley. This transition is part of Brookfield Reinsurance's strategic plan to bolster its market position by expanding its portfolio and enhancing its operational capabilities.

Additionally, Brookfield Reinsurance's 2023 annual report, which includes audited financial statements up to December 31, 2023, details the Argo acquisition extensively. The report highlights that the all-cash transaction valued Argo Group International’s issued and outstanding shares at $30 each, totaling $1.1 billion.

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