Brookfield Asset Management Reinsurance Partners Ltd. (NYSE: BAMR; TSX: BAMR) has entered into a definitive agreement to acquire American National (NASDAQ: ANAT) in an all-cash transaction valued at approximately $5.1 billion. American National offers life insurance, annuities, health insurance, credit insurance, pension products and property and casualty insurance for personal lines, agribusiness and certain commercial exposures.
Sachin Shah, chief executive officer of Brookfield Reinsurance, said, “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.”
Jim Pozzi, president and chief executive officer 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.”
RBC Capital Markets is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Brookfield Reinsurance on this transaction. Debt financing for the transaction will be provided by a syndicate of banks led by Bank of Montreal and Royal Bank of Canada. Paul Hastings LLP is serving as legal advisor to Bank of Montreal and Royal Bank of Canada in connection with the debt financing. Citi serves as financial advisor and Sidley Austin LLP is acting as lead transaction counsel to American National on this transaction, alongside Greer, Herz & Adams LLP, which serves as American National’s general counsel.