American Equity Investment Life Holding Company and Brookfield Asset Management Reinsurance Partners (Brookfield Reinsurance) have received regulatory approval for Brookfield Reinsurance to increase its common stock ownership.
Brookfield Reinsurance currently owns approximately 9.85% of the company’s issued and outstanding common stock, which was purchased in accordance with the terms of its previously-announced Investment Agreement with the company.
In accordance with the terms of the Investment Agreement, Brookfield Reinsurance will now purchase additional shares to bring its total combined ownership to approximately 16% of Company common stock.
As a result, American Equity will issue 6,775,000 shares of its common stock to Brookfield Reinsurance at $37.33 per share, the company’s adjusted book value as of September 30, 2021, within the next few days.
The company will use its $736 million outstanding share repurchase authorisation to offset the Brookfield Reinsurance issuance dilution and to return capital to shareholders.
The company will affix appropriate legends to any certificates evidencing shares it issues to Brookfield Reinsurance.
In October last year, Brookfield Reinsurance closed a transaction to reinsure up to $10 billion of annuity products issued by American Equity.