Mutual life insurance company Massachusetts Mutual Life Insurance Company is to acquire Cincinnati, Ohio-based American Financial Group, Inc. (NYSE:AFG)’s wholly owned subsidiary, Great American Life Insurance Company, and other subsidiaries and affiliated entities, which primarily offer traditional fixed and fixed indexed annuity products.
The purchase price is $3.5 billion, subject to adjustment at closing. The transaction is expected to close in the second quarter of 2021, subject to regulatory and other necessary approvals. Upon the close of the deal, Great American Life will operate as an independent subsidiary of MassMutual.
The acquisition advances MassMutual’s strategy as Great American Life complements the company’s existing annuity business by broadening and diversifying its product and distribution capabilities. This will allow MassMutual to reach more customers in need of lifetime income solutions. In addition, Great American Life will provide MassMutual with another diversified source of earnings, helping to deliver additional value to its policyowners and position the company for long-term growth.
Great American Life is a leader in the annuity market, providing a product suite, customer service, and distribution relationships with banks, independent agents, and independent broker-dealers.
American Financial Group is an insurance holding company engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer, and registered investment advisor markets.
FinSMEs
28/01/2021