Brookfield Asset Management Inc’s reinsurance unit has agreed to buy insurer American National Group Inc for about $5.1 billion in an all-cash deal, the companies said on Monday.
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.
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