Massachusetts Mutual Life Insurance Company (MassMutual) has concluded the acquisition of American Financial Group’s (AFG) annuity business for approximately $3.5bn.
Under the deal, first announced in January this year, MassMutual acquired Great American Life and its two insurance subsidiaries, Annuity Investors Life Insurance Company and Manhattan National Life Insurance Company.
The deal also includes a broker-dealer affiliate, Great American Advisors, and insurance distributor, AAG Insurance Agency.
Great American Life and its subsidiaries had around $40bn of traditional fixed and indexed annuity reserves at last year-end.
Mark Muething will continue to lead Great American Life, which employs over 600 people employees, as president.
He will report to Mike Fanning, head of MassMutual U.S.
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MassMutual chairman, president and CEO, Roger Crandall said: “This acquisition immediately broadens our product offerings, further diversifies our distribution capabilities and generates additional earnings – enabling us to help even more people secure their future and protect the ones they love.”
Great American Life will operate as an independent subsidiary of MassMutual and will remain headquartered in Cincinnati, Ohio.
Fanning, who will oversee the Great American Life business added: “We look forward to working together with Great American Life to reach more customers in need of lifetime income solutions and deliver ongoing value to our policy owners and customers.”
In December last year, MassMutual signed an agreement with Stone Ridge Asset Management to acquire fintech platform Flourish.