Best’s News & Research Service - July 06, 2023 12:28 PM (EDT)
AM Best Comments on Credit Ratings of American Equity Investment Life Ins. Co. and Its Subs. Following Acquisition Announcement
- July 06, 2023 12:28 PM (EDT)
Oldwick //BestWire// - 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.