Brookfield Asset Management Reinsurance Partners, which was launched by the alternative asset manager in late 2020, has entered into a definitive agreement to acquire American National Group, Inc. in an all-cash transaction valued at $5.1 billion.
Brookfield’s recently launched reinsurance business operates as a paired entity to Brookfield, providing shareholders with the opportunity to be flexible with their interest in the firm.
As part of its merger agreement with American National, each issued and outstanding share of the acquiree’s common stock will be converted into the right to receive $190 in cash at the closing of the merger, which is expected in the first half of next year, subject to certain customary closing conditions.
The deal consideration of $190 per share of American National common stock represents a 55% premium to the unaffected share price of $122.56 on May 11th, 2021, and a 24.7% premium over the company’s 30-day volume-weighted average price as of August 6th, 2021.
The National American board of directors unanimously approved this merger agreement with Brookfield Reinsurance.
Sachin Shah, Chief Executive Officer (CEO) of Brookfield Reinsurance, commented: “The acquisition of American National represents a significant milestone in the continued expansion of our insurance business. 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.”
Upon closing, Brookfield Reinsurance plans to maintain American National’s headquarters in Galveston, Texas, as well as its presence in League City, Texas, and also its operational hubs in Springfield, Missouri and Albany, New York.
The reinsurer says that it also looks forward to continuing American National’s longstanding involvement with its local communities.
Jim Pozzi, President and CEO of American National, said: “This is an energizing moment in American National’s history. 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.
“I would like to thank our board of directors, particularly our strategic opportunities committee of independent directors, which conducted a thorough review of a range of strategic alternatives and possible business opportunities to maximize value for our stockholders. The transaction provides clear and immediate value for our stockholders at an attractive premium.”
The consideration for the merger will be funded by Brookfield Reinsurance via a combination of committed debt and equity financing, including committed debt financing of $1.5 billion and an equity commitment of up to the aggregate merger consideration from Brookfield Asset Management.
