Brookfield Re closes AEL purchase
Bermuda-based Brookfield Reinsurance has closed its acquisition of American Equity Investment Life Holding Company, paying 2.7% more for the life and annuity insurer than originally stated.
Brookfield said it was buying the company in a cash and stock transaction valued at $56.50 per AEL share, up from $55 per share when the sale was announced last year.
The purchase of the company had valued the company at $4.3 billion. Brookfield Re already owned 20% of the business.
AEL’s leading fixed annuity business bolsters Brookfield Re’s expanding insurance operations and increases its insurance assets under management to over $100 billion, Brookfield Re said.
Jon Bayer, managing partner at Brookfield Re said: “We are excited to welcome AEL to our organisation as we continue to grow, diversify and scale our retirement services capabilities. AEL’s strong franchise and track record of serving policyholders and distribution partners, coupled with the scale of our existing platform and offerings, will position us well for the next phase of growth.”
Brookfield Re expects to maintain AEL’s headquarters in Des Moines, Iowa, and its growth in the fixed annuity business over time should increase jobs in Iowa. Brookfield Reinsurance also looks forward to supporting the greater Des Moines area, including through maintaining AEL’s existing charitable contributions and through Brookfield’s broader charitable foundation and other charitable initiatives.
Barclays served as lead financial advisor to Brookfield Re and BMO Capital Markets also acted as an advisor to Brookfield Re on this transaction. Cravath, Swaine & Moore served as legal advisor to Brookfield Re and Debevoise & Plimpton served as Brookfield Reinsurance’s insurance legal counsel. Torys LLP served as legal advisor to Brookfield Asset Management.
Ardea Partners and JP Morgan served as financial advisors and Sullivan & Cromwell LLP acted as legal advisor to AEL on this transaction.
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