Brookfield Asset Management Reinsurance Partners (Brookfield Reinsurance) has closed its previously-announced transaction to reinsure up to $10 billion of annuity products issued by American Equity Investment Life Insurance Company.
Under the agreement, Brookfield Reinsurance has reinsured $4 billion worth of in-force policies, and will reinsure up to an additional approximately $6 billion of AEILIC’s “IncomeShield” or other mutually agreed liabilities issued by AEL on a flow basis.
The partnership included the reinsurance of $5 billion of existing liabilities and up to $5 billion of new sales of American Equity’s IncomeShield or similar fixed index annuity products.
American Equity also received access to Brookfield investments in targeted asset classes as part of the agreed partnership.
Brookfield Reinsurance holds an approximately 9.5% equity interest in AEL and has agreed to purchase additional shares of AEL’s common stock for up to a total equity interest of 19.9% (and not less than a 15% equity interest), subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions.
