Brookfield to pay $5.1B in cash for American National

By: Miguel A. Rodriguez

15:50, 10 August 2021

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A new week, a new deal was announced in the insurance sector

Brookfield Asset Management – a leading global alternative asset manager with more than $600 billion of assets under management – agreed to buy insurer American National Group. According to their statement, it will be a $5.1 billion all-cash deal.

American National is majority-owned by the founder’s family – Lewis Moody Jr – who controls its through a range of trusts and holdings. The Group offers products such as life, health, property and casualty insurance, and annuities.

Under the potential deal, American National shareholders will receive $190 per share, a premium of 10% to the insurer’s Friday closing price. Brookfield is looking to keep America National’s headquarters in Galveston, Texas, and maintain its operational hubs around the country.

RBC Capital Markets serves as a financial adviser to Brookfield, while Citi is American National’s. The merger is expected to close in the first half of 2022.

After the news hit the wires, Brookfield Asset Management stock price closed 0.60% higher.

 

Sources: finance.yahoo.com, reuters.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.