BAM Re to acquire American National for $5.1 billion

American National and Brookfield Asset Management Reinsurance Partners announced they have entered into a definitive merger agreement whereby Brookfield Reinsurance (BAM Re) will acquire American National in an all-cash transaction valued at approximately $5.1 billion.

Founded in 2020, BAM Re – through its operating subsidiaries North End Re and Brookfield Annuity – provides annuity-based reinsurance products to insurance and reinsurance companies and acts as a direct issuer of pension risk transfer products for pension plan sponsors.

Founded in 1905 and headquartered in Galveston, Texas, American National offers a broad line of products and services, which include life insurance, annuities, health insurance, credit insurance, pension products and property and casualty insurance. The American National companies operate in all 50 states. Major insurance subsidiaries include American National Life Insurance Company of Texas, American National Life Insurance Company of New York, American National Property and Casualty Company, Garden State Life Insurance Company, Standard Life and Accident Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company.

“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.” – Sachin Shah, Chief Executive Officer of Brookfield Reinsurance.

Following closing, Brookfield Reinsurance intends to maintain American National’s headquarters in Galveston, Texas and its presence in League City, Texas, as well as its operational hubs in Springfield, Missouri and Albany, New York.

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.” – Jim Pozzi, President and Chief Executive Officer of American National.

The merger is expected to close in the first half of 2022.