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Started in 1905 by William Lewis Moody Jr., American National is
majority-owned by the founder's family, which controls the
company through a range of trusts and holdings.
The company offers several products, including life, health, and
property and casualty (P&C) insurance, as well as annuities,
according to its website.
The potential deal comes as U.S. insurers are stepping up sales
of annuities and other capital-intensive assets amid a surge in
interest from new and established private equity buyers hungry
to boost the amount of money they manage.
American International Group, for example, plans to use an
initial public offering to sell part of its life and retirement
business, while Blackstone Group last month agreed to buy a
sizeable stake.
Canada's Brookfield said in October it would acquire a stake in
American Equity Investment Life Holding Co and grant the fixed
index annuity provider access to Brookfield's alternative
assets.
American National shareholders will receive $190 per share in
cash, representing a premium of about 10% to the insurer's
closing price on Friday. https://on.wsj.com/3lH84at
Reuters reported in May that American National was exploring
options including a sale of the company, citing people familiar
with the matter.
The potential deal follows corporate results that show a return
to hefty profits for insurers after they took a hit last year as
claims rose due to the economic disruption caused by the
COVID-19 pandemic.
Brookfield plans to keep American National's headquarters in
Galveston, Texas, and maintain its operational hubs around the
country.
The merger is expected to close in the first half of 2022.
RBC Capital Markets is serving as financial adviser to
Brookfield Reinsurance, while Citi is American National's
financial adviser.
(Reporting by Noor Zainab Hussain in Bengaluru; editing by Vinay
Dwivedi)
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