Brookfield Asset Management Reinsurance Partners (Brookfield Reinsurance) has agreed to acquire American National Group in an all-cash transaction valued at approximately $5.1bn.
As per the terms of the agreement, each issued and outstanding share of American National common stock will be converted into the right to receive $190 in cash at the closing of the merger.
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The offer price represents a 55% premium to the unaffected share price of $122.56 on 11 May 2021 along with a 24.7% premium over American National’s 30-day volume-weighted average price as of 6 August 2021.
Brookfield Reinsurance expects the acquisition of American National strengthens its insurance business.
American National will remain headquartered in Galveston, Texas. Its offices in League City, Texas, as well as its operational hubs in Springfield, Missouri and Albany, New York will also be retained.
Brookfield Reinsurance CEO Sachin Shah said: “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.”
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By GlobalDataAmerican National president and CEO Jim Pozzi said: “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. The transaction provides clear and immediate value for our stockholders at an attractive premium.”
The merger is expected to complete in the first half of 2022. However, it is subject to regulatory approval and customary closing conditions.
