As part of the deal, Brookfield will take all outstanding shares of AEL that it does not already own for a total of $4.3bn.
Brookfield expects to maintain AEL headquartered in Des Moines, Iowa, and the firm hopes to support the area.
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Anant Bhalla, president and chief executive of AEL, said: “We are pleased to have reached this agreement with Brookfield Reinsurance and believe this transaction provides an excellent outcome for all AEL shareholders, policyholders and other stakeholders. The significant premium that will be delivered to shareholders as a result of this transaction is a testament to our strong performance and AEL’s successful transformation under the AEL 2.0 strategy into an asset light insurer and asset manager. The transaction represents an opportunity for AEL shareholders, through the BAM Shares, to remain invested in a market leading global alternative asset manager. I couldn’t be more excited about the potential opportunities for our people and benefits for policyholders as part of a preeminent global financial institution.”
David Mulcahy, non-executive chairman of AEL’s board, added: “On behalf of the entire board, I am incredibly proud of AEL’s achievements and record of value creation for all stakeholders under the AEL 2.0 model. Thanks to Anant, the entire management team and our dedicated employees across our platform for their role and contributions in achieving this great outcome with Brookfield Reinsurance.”
Sachin Shah, chief executive of Brookfield Reinsurance, stated: “This transaction represents an important step in the continued growth of our insurance business, further diversifying, and scaling, our insurance capabilities, and is a direct result of the partnership we have developed with AEL since our initial investment in 2020. With this transaction we have now deployed or committed over $10bn of capital since our inception, bringing our total insurance assets to over $100bn, and we remain on track with our growth targets for the business. Brookfield Reinsurance remains well capitalised and committed to meeting the needs of its policyholders and clients.”
Jon Bayer, managing partner, Brookfield Reinsurance, continued: “Given the complementary nature of AEL’s leading fixed annuity business to our existing platform, we expect to accelerate growth in collaboration with our distribution partners and employees while continuing to meet the needs of our policyholders and other stakeholders. Under its current leadership, AEL has been transformed into an innovative, asset light insurer that is positioned for growth, and we look forward to building on our successful partnership.”
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By GlobalDataBarclays is serving as lead financial adviser to Brookfield Reinsurance and BMO Capital Markets is also acting as an adviser to Brookfield Reinsurance on this transaction. Cravath, Swaine & Moore LLP is serving as legal advisor to Brookfield Reinsurance and Debevoise & Plimpton LLP is serving as Brookfield Reinsurance’s insurance counsel.
