Shares of American life insurer Brighthouse Financial (BHF) shot through the roof on Thursday after the company agreed to a $4.1 billion acquisition offer from Abu Dhabi-backed investment holding company Aquarian Capital.
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The deal represents one of the largest insurance-sector takeovers by a private investment firm seen this year. BHF stock climbed almost 27% to $65.75 as of 2:21 p.m. EDT.
Brighthouse Agrees to Go Private
Brighthouse spun off from MetLife (MET), one of the largest life insurance providers in the U.S., in 2017, and went public in the same year. The offer from the New York-based holding company will take Brighthouse private at $70 per share in an all-cash transaction.
The offer represents a 37% premium to Brighthouse’s closing share price on January 27, when news of the arrangement first emerged. The deal is expected to close in 2026 and is still subject to approval from regulators and Brighthouse’s shareholders.
Brighthouse to Keep Brand Name and CEO
As an investment holding company, Aquarian Capital focuses its portfolio on insurance and asset management, and it currently manages about $25.6 billion in assets. The firm, which counts Abu Dhabi’s sovereign fund Mubadala as an investor, believes that acquiring Brighthouse aligns with its “strategic focus on the United States retirement market.”
If the deal goes through, Brighthouse will maintain its brand name and operate as a standalone company within Aquarian Capital’s portfolio, both companies noted in a statement. The company will also maintain its current base in Charlotte, North Carolina, and continue to be led by Eric Steigerwalt, its current president and CEO.
Is Brighthouse Financial a Good Stock to Buy?
Turning to Wall Street, Brighthouse Financial’s shares currently have a Hold consensus rating, according to TipRanks. This is based on two Buys, six Holds, and one Sell rating assigned by nine analysts over the past three months.
Moreover, the average BHF price target of $57.25 indicates more than 12% downside risk from the current trading level.
