Capital solutions business, Brookfield Reinsurance (NYSE: BNRE) announced today that it will acquire American Equity Investment Life Holding Company (NYSE: AEL) in a cash and stock deal worth $4.3 billion.
As a part of this deal, each AEL shareholder will receive $55.00 per AEL share, consisting of $38.85 in cash and 0.49707 of a Brookfield Asset Management (BAM) class A limited voting share. This BAM share will have a value of $16.15, based on the 90-day volume-weighted average share price (VWAP) of the BAM Shares on June 23, 2023. The consideration of $55.00 per share indicates a premium of 35% to AEL’s closing share price on June 23 and a 42% premium to AEL’s 90-day VWAP as of such date.
Sachin Shah, CEO of Brookfield Reinsurance, said, “This transaction represents an important step in the continued growth of our insurance business, further diversifying, and scaling, our insurance capabilities, and is a direct result of the partnership we have developed with AEL since our initial investment in 2020. With this transaction we have now deployed or committed over $10 billion of capital since our inception, bringing our total insurance assets to over $100 billion, and we remain on track with our growth targets for the business.”
BNRE stock has gone up by around 7% year-to-date.