PE Deals

Brookfield closes $10bn reinsurance deal with AEL affiliate

Brookfield Asset Management Reinsurance Partners has closed a deal to reinsure up to $10 billion of annuity products issued by an affiliate of American Equity Investment Life Insurance Company.

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Brookfield Asset Management Reinsurance Partners has closed a deal to reinsure up to $10 billion of annuity products issued by an affiliate of American Equity Investment Life Insurance Company. Last year, Brookfield agreed to acquire up to 19.9 percent of AEL, a West Des Moines, Iowa-based retirement planning annuity provider. It currently holds a 9.5 percent equity interest.

PRESS RELEASE

BROOKFIELD, NEWS, Oct. 11, 2021 (GLOBE NEWSWIRE) — Brookfield Asset Management Reinsurance Partners Ltd. (“Brookfield Reinsurance”) (NYSE, TSX: BAMR) today announced the closing of its previously-announced transaction to reinsure up to $10 billion of annuity products issued by American Equity Investment Life Insurance Company (“AEILIC”), a subsidiary of American Equity Investment Life Holding Company (NYSE:AEL) (“AEL”). Under the agreement, Brookfield Reinsurance has reinsured a block of approximately $4 billion of in-force policies, and will reinsure up to an additional approximately $6 billion of AEILIC’s “IncomeShield” or other mutually agreed liabilities issued by AEL on a flow basis.

Brookfield Reinsurance holds an approximate 9.5% equity interest in AEL and has agreed to purchase additional shares of AEL’s common stock for up to a total equity interest of 19.9% (and not less than a 15% equity interest), subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions.

Advisors
Debevoise & Plimpton LLP is serving as legal advisor to Brookfield Reinsurance in connection with the reinsurance transaction.

About Brookfield Reinsurance
Brookfield Asset Management Reinsurance Partners Ltd. (NYSE: BAMR; TSX: BAMR) operates a leading reinsurance business focused on providing capital-based and annuity solutions for insurance and reinsurance companies, and pension risk transfer products for pension plan sponsors. Each class A exchangeable share of Brookfield Reinsurance is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Asset Management Inc. (NYSE: BAM; TSX: BAM.A).