CINCINNATI–(Enterprise WIRE)–Jan 27, 2021–
American Monetary Team, Inc. (NYSE: AFG) introduced right now that it has entered into a definitive settlement to promote its Annuity organization to Massachusetts Mutual Lifestyle Insurance plan Corporation (MassMutual) for $3.5 billion in cash, issue to remaining closing changes to the extent that GAAP shareholders’ equity excluding accumulated other complete earnings of the entities marketed varies from $2.8 billion.
Underneath the terms of the agreement, which is anticipated to shut in the 2nd quarter of 2021, MassMutual will get Terrific American Life Insurance policies Enterprise (GALIC) and its two insurance policies subsidiaries, Annuity Investors Daily life Coverage Organization and Manhattan Countrywide Daily life Insurance plan Enterprise. At December 31, 2020, GALIC and its subsidiaries had approximately $40 billion of conventional fixed and indexed annuity reserves. AFG expects to understand an following-tax obtain on the sale of $620 million to $690 million ($7.10 to $7.90 for each AFG share) upon closing. Prior to completion of the transaction, AFG will purchase approximately $500 million in actual estate-relevant partnerships and instantly owned real estate from GALIC.
S. Craig Lindner, AFG’s Co-Main Executive Officer, commented, “This transaction offers an exceptional option for GALIC and MassMutual to be one of the major vendors of traditional set and indexed annuities in major distribution channels and marketplaces. In reality, MassMutual has between the maximum insurance fiscal energy ratings, which we imagine will end result in enhanced distributor recruitment and policyholder retention. MassMutual’s dedication to establish a subsidiary in Cincinnati makes certain that the arrangement will have no effects on GALIC’s associations with and commitments to its annuity policyholders and distribution associates. Importantly, we are very happy that this transaction will give persuasive occupation options for our annuity associates, and carry the operations of a properly-revered insurer to the Increased Cincinnati business enterprise neighborhood.”
Mr. Lindner continued, “As Co-CEOs, Carl and I watch capital administration as one particular of our most significant priorities. AFG’s capital and liquidity will be appreciably increased as a result of the transaction. With a solid stability sheet and significant extra money, we will keep on to examine possibilities for deploying AFG’s extra capital, together with the potential for wholesome, rewarding organic growth, enlargement of our Specialty Property & Casualty market organizations by way of acquisitions and begin-ups that satisfy our goal return thresholds, as nicely as share repurchases and unique dividends.”
Roger Crandall, Chairman, President and CEO, MassMutual commented: “With MassMutual’s enduring economic power, wide investment decision capabilities and conclude-to-stop digital working experience, we will make on the exceptional leadership position that the talented and committed Great American Life team has created in excess of generations, enabling us to assistance even more folks protected their upcoming and secure the kinds they appreciate.”
Skadden, Arps, Slate, Meagher & Flom LLP and Keating Muething & Klekamp PLL are acting as legal advisors to AFG. Debevoise & Plimpton LLP is acting as authorized advisor to MassMutual.
American Monetary Team is an coverage keeping business, based mostly in Cincinnati, Ohio. By means of the functions of Wonderful American Insurance policies Group, AFG is engaged primarily in assets and casualty insurance plan, concentrating on specialized business products and solutions for businesses, and in the sale of common set and indexed annuities in the retail, economic establishments, broker-dealer, and registered investment advisor marketplaces. Excellent American Coverage Group’s roots go again to 1872 with the founding of its flagship enterprise, Great American Insurance Enterprise.
MassMutual is a primary mutual daily life insurance policies enterprise that is operate for the gain of its users and taking part policyowners. Founded in 1851, the business has been continuously guided by a single constant objective: we support men and women safe their future and defend the ones they enjoy. With a target on providing prolonged-term value, MassMutual gives a large array of defense, accumulation, wealth management and retirement products and products and services.
Ahead Hunting Statements
This press launch is made up of specified statements that might be deemed to be “forward-searching statements” inside the meaning of Segment 27A of the Securities Act of 1933 and Area 21E of the Securities Trade Act of 1934. All statements in this push release not working with historic success are forward-on the lookout and are centered on estimates, assumptions and projections. Examples of these kinds of ahead-on the lookout statements consist of statements relating to: the Company’s expectations regarding marketplace and other ailments and their result on potential premiums, revenues, earnings, investment decision routines and the sum and timing of share repurchases recoverability of asset values predicted losses and the adequacy of reserves for asbestos, environmental pollution and mass tort statements charge modifications and improved loss working experience.
Real effects and/or economic affliction could vary materially from those contained in or implied by this kind of ahead-seeking statements for a variety of motives which include, but not restricted to: that AFG might be not able to complete the proposed transaction due to the fact, between other motives, situations to the closing of the proposed transaction may well not be happy or waived, uncertainty as to the timing of completion of the proposed transaction, failure to realize the expected positive aspects from the proposed transaction, changes in fiscal, political and financial conditions, which includes variations in desire and inflation costs, currency fluctuations and extended financial recessions or expansions in the U.S. and/or abroad overall performance of securities marketplaces, such as the expense of fairness index selections new legislation or declines in credit rating excellent or credit score scores that could have a content affect on the valuation of securities in AFG’s financial commitment portfolio the availability of money modifications in insurance policy law or regulation, which includes modifications to funds prerequisites the outcomes of the COVID-19 outbreak, such as the effects on the worldwide and countrywide financial state and credit markets, legislative or regulatory developments impacting the insurance plan sector, quarantines or other travel or health-similar limits alterations in the lawful atmosphere influencing AFG or its customers tax law and accounting variations concentrations of organic catastrophes and critical temperature, terrorist pursuits (like any nuclear, organic, chemical or radiological activities), incidents of war or losses ensuing from pandemics, civil unrest and other major losses disruption triggered by cyber-attacks or other technologies breaches or failures by AFG or its small business companions and company suppliers, which could negatively affect AFG’s small business and/or expose AFG to litigation progress of coverage decline reserves and establishment of other reserves, notably with respect to amounts affiliated with asbestos and environmental promises availability of reinsurance and ability of reinsurers to fork out their obligations trends in persistency and mortality competitive pressures the capacity to obtain adequate premiums and plan conditions modifications in AFG’s credit score ratings or the economical toughness scores assigned by main ratings agencies to AFG’s functioning subsidiaries the impact of the situations in the international money markets and the world economic system relating to AFG’s worldwide functions and other components identified in AFG’s filings with the Securities and Trade Fee.
The ahead-seeking statements herein are manufactured only as of the date of this push launch. The Company assumes no obligation to publicly update any ahead-hunting statements.
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Get in touch with: Diane P. Weidner, IRC
Vice President – Trader & Media Relations
Keyword: MASSACHUSETTS OHIO UNITED STATES NORTH America
Field Key word: Qualified Companies Insurance FINANCE
Source: American Economical Team, Inc.
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PUB: 01/27/2021 05:00 PM/DISC: 01/27/2021 05:00 PM