Brookfield Announces Strategic Partnership with American Equity Life
18 Ottobre 2020 - 9:00PM
Brookfield Announces Strategic Partnership with American Equity
Life
Brookfield Asset Management Inc. (“Brookfield”) (NYSE: BAM, TSX:
BAM.A) today announced a strategic partnership with American Equity
Investment Life Holding Company (“AEL”) (NYSE: AEL), a leading
retirement planning annuity provider. The partnership establishes
Brookfield as a 19.9% cornerstone investor and reinsurance
counterparty of AEL, supporting continued growth opportunities for
the business.
AEL specializes in the sale, through independent
agents, banks, and broker dealers, of fixed index annuities. These
investment products support individuals in preserving their
retirement dollars and provide a secure, predictable income.
The partnership reflects a meaningful investment
for Brookfield in one of the leading originators for fixed index
annuities and has the following strategic components:
- Brookfield
will acquire a 19.9% ownership interest in the common shares of AEL
in two stages: an initial purchase of a 9.9% interest at $37.00 per
share promptly following required regulatory approval, and a second
purchase of an incremental 10.0% interest, at the greater value of
$37.00 per share or adjusted book value per share. The second
equity investment is subject to finalization of certain reinsurance
agreement terms, receipt of applicable regulatory approvals and
other closing conditions and is expected to close in the first half
of 2021. Brookfield will receive one seat on American Equity’s
Board of Directors following the initial equity investment.
- A
reinsurance transaction through which Brookfield’s reinsurance and
annuity subsidiary, Brookfield Asset Management Partners, will
reinsure up to $10 billion in annuity liabilities, including an
initial $5 billion of existing liabilities and up to an
incremental $5 billion of future business when written.
- AEL will receive unique access to
Brookfield’s attractive alternative asset strategies, which
positions AEL to generate sustained returns in a low interest rate
environment.
Sachin Shah, Brookfield’s Chief Investment
Officer, said: “We are pleased to be investing in American Equity
and to partner with the business in reinsurance as it grows its
leading position as a retirement planning annuity provider. This
transaction represents a meaningful investment for us in the
attractive U.S. insurance market and we believe our alternative
asset strategies can deliver long-term value to the company. We
look forward to supporting American Equity in advancing its AEL 2.0
strategy which is well-positioned to create value for all
stakeholders.”
Anant Bhalla, President and Chief Executive
Officer of American Equity, said: “This compelling strategic
transaction, which we have been discussing with Brookfield since
March, demonstrates the substantial shareholder value we are
creating through execution of our AEL 2.0 strategy. By partnering
with a world-class asset management and investment firm like
Brookfield, we are accelerating the implementation of our strategy
to be the leading, customer-focused annuity provider with
best-in-class capabilities across the entire insurance value chain,
from distribution to asset management. This partnership accelerates
the transformation of our business toward a ROA model from our
historical focus on ROE, unlocks significant new investment
opportunities, and enables us to deliver significant value to our
shareholders and policyholders.”
Brookfield Asset
ManagementBrookfield Asset Management is a leading global
alternative asset manager with approximately US$550 billion of
assets under management across real estate, infrastructure,
renewable power, private equity and credit. Brookfield owns and
operates long-life assets and businesses, many of which form the
backbone of the global economy. Utilizing its global reach, access
to large-scale capital and operational expertise, Brookfield offers
a range of alternative investment products to investors around the
world—including public and private pension plans, endowments and
foundations, sovereign wealth funds, financial institutions,
insurance companies and private wealth investors.
Brookfield Asset Management is listed on the New
York and Toronto stock exchanges under the symbols BAM and BAM.A,
respectively.
American Equity American Equity
Investment Life Holding Company, through its wholly-owned
subsidiaries, is a leading issuer of fixed index annuities through
independent agents, banks and broker-dealers. American Equity
Investment Life Holding Company, a New York Stock Exchange listed
company (NYSE: AEL), is headquartered in West Des Moines, Iowa. For
more information, please visit www.american-equity.com.
For more information, please contact:
MediaClaire HollandTel: +1 416 369-8236Email:
claire.holland@brookfield.com |
|
Investor RelationsLinda NorthwoodTel: +1 416
359-8647Email: linda.northwood@brookfield.com |
Forward-Looking Statements
This news release contains “forward-looking
information” within the meaning of Canadian provincial securities
laws and “forward-looking statements” within the meaning of Section
27A of the U.S. Securities Act of 1933, as amended, Section 21E of
the U.S. Securities Exchange Act of 1934, as amended, “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. In some cases, you can identify forward-looking
statements and information by words such as “intends,” “expects,”
“believes,” “approximately,” “estimate,” “may,” “predict,” “plan,”
“should,” “will,” and “would” or the negative version of these
words or other comparable or similar words that are predictive in
nature or indicate future events, trends or prospects and which do
not relate to historical matters identify forward-looking
statements.
Although Brookfield believes that
forward-looking statements and information in this news release are
based upon reasonable assumptions and expectations, the reader
should not place undue reliance on forward-looking statements and
information as such statements and information involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Brookfield to differ
materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements
and information.
Factors that could cause actual results to
differ materially from those contemplated or implied by
forward-looking statements include the ability to obtain regulatory
approvals and meet other closing conditions; a delay in the closing
of the investment; the general political, economic and market
conditions; and other risks and factors as detailed from time to
time in Brookfield’s Annual Report on Form 40-F filed with the
Securities and Exchange Commission as well as other documents filed
by Brookfield with the securities regulators in Canada and the
United States.
We caution that the foregoing list of important
factors that may affect future results is not exhaustive. When
relying on our forward-looking statements to make investment
decisions with respect to Brookfield or otherwise, investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law,
Brookfield undertakes no obligation to publicly update or revise
any forward-looking statements or information, whether written or
oral, that may be as a result of new information, future events or
otherwise.
This news release and its contents do not
constitute and should not be construed as a recommendation to buy;
an offer to buy or solicitation of an offer to buy; an offer to
sell; advice in relation to, any securities of Brookfield or
AEL.