MassMutual to acquire Great American Life Insurance Company
MassMutual announced it has entered into a definitive agreement with American Financial Group to purchase its wholly-owned subsidiary, Great American Life Insurance Company , and other subsidiaries and affiliated entities, which primarily offer traditional fixed and fixed indexed annuity products.
The purchase price is $3.5 billion, subject to adjustment at closing. The transaction is expected to close in the second quarter of 2021, subject to regulatory and other necessary approvals. Upon the close of the transaction, Great American Life will operate as an independent subsidiary of MassMutual.
“This acquisition is an excellent strategic fit for MassMutual that will broaden our product offerings, expand our distribution, and generate additional earnings, allowing us to build a true lifetime income franchise and deliver ongoing value to our policyowners and customers. With MassMutual’s enduring financial strength, broad investment capabilities, and end-to-end digital experience, we will build on the outstanding leadership position that the talented and dedicated Great American Life team has built over generations, enabling us to help even more people secure their future and protect the ones they love.” – Roger Crandall, Chairman, President and CEO, MassMutual.
“This transaction presents an excellent opportunity for Great American Life and MassMutual to be one of the leading providers of traditional fixed and indexed annuities in major distribution channels and markets. In fact, MassMutual has among the highest insurance financial strength ratings, which we believe will result in enhanced distributor recruitment and policyholder retention.” – S. Craig Lindner, AFG’s Co-Chief Executive Officer.