(Bloomberg) — Brookfield Asset Management Reinsurance Partners Ltd. agreed to buy American National Group Inc. for about $5.1 billion in cash, adding a company that offers products including life insurance, annuities and health coverage, and operates across all 50 U.S. states.
Under the agreement, Brookfield Reinsurance will pay $190 in cash for each share of American National, the companies said in a statement Monday. That’s 10% more than American National’s closing price on Friday, and represents a 25% premium over its average 30-day price.
“The acquisition of American National represents a significant milestone in the continued expansion of our insurance business,” Brookfield Reinsurance Chief Executive Officer Sachin Shah said in the statement. “American National’s management team has a strong track record of stable growth and disciplined underwriting.”
In addition to life and health insurance and annuities, American National also offers credit insurance, pension products and property and casualty insurance for personal lines, agribusiness and other firms. The Galveston, Texas-based company was founded in 1905.
After the takeover is completed, expected in the first half of next year, Brookfield Reinsurance plans to keep American National’s Galveston headquarters and its presence in League City, Texas, along with operational hubs in Springfield, Missouri, and Albany, New York. Brookfield Reinsurance is funding the acquisition through a combination of debt and equity, including committed debt financing of $1.5 billion.
American National shares rose 7.8% to $186.26 at 9:33 a.m. in New York. Brookfield Reinsurance fell 0.4% to $57.24.
(Updates with shares in last paragraph.)
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