AM Best Comments on Credit Ratings of American Equity Investment Life Insurance Company and Its Subsidiaries Following Acquisition Announcement
06 Juli 2023 - 7:05PM
Business Wire
AM Best has commented that the Financial Strength Rating
of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-”
(Excellent) of American Equity Investment Life Insurance Company
and its subsidiaries, American Equity Investment Life Insurance
Company of New York (Lake Success, NY) and Eagle Life Insurance
Company, remain unchanged following the announcement that a
definitive agreement has been reached whereby Brookfield
Reinsurance Ltd. will acquire all of the outstanding shares of
common stock of the parent company, American Equity Investment Life
Holding Company (AEL) [NYSE: AEL], that it does not already own, in
a cash and stock transaction of approximately $4.3 billion. The
outlook of these Credit Ratings (ratings) will remain stable.
The transaction is expected to have minimal impact on the
current strategic plan, with continued investment in
infrastructure, while preserving liquidity. Current product
development also will continue within AEL operating companies as
planned.
The merger is expected to close in the first half of 2024,
subject to regulatory approvals. Under the terms of the merger
agreement, payment of dividends on AEL common stock will be
suspended through the closing of the transaction. Following the
closing, Brookfield Reinsurance Ltd. expects to maintain AEL’s
headquarters in Des Moines, Iowa and intends to continue the focus
on alternative asset strategies. AM Best will continue to closely
monitor the transaction and the impact to the operating insurance
entities under AEL.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Igor Bass Senior Financial Analyst +1 908 882 1646
igor.bass@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Jacqalene Lentz Director +1 908 882 2011
jacqalene.lentz@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
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