Brookfield Reinsurance signs $ 10 billion reinsurance deal with American
Equity investment life insurance company
BROOKFIELD, NEWS, October 11, 2021 – Brookfield Asset Management Reinsurance Partners Ltd. (“Brookfield Reinsurance”) (NYSE, TSX: BAMR) today announced the closing of its previously announced transaction to reinsure up to $ 10 billion in annuity products issued by American Equity Investment Life Insurance Company (“AEILIC” ), a subsidiary of American Equity Investment Life Holding Company (NYSE: AEL) (“AEL”). Under the agreement, Brookfield Reinsurance reinsured an approximately $ 4 billion block of in force policies and will reinsure up to ‘About an additional $ 6 billion from AEILIC’s “IncomeShield” or other mutually agreed-upon liabilities issued by AEL on a flow-based basis.
Brookfield Reinsurance owns an approximate 9.5% stake in AEL and has agreed to purchase additional shares of AEL up to a total stake of 19.9% (and not less than a 15% stake), subject to receipt of approvals and satisfaction of other customary closing conditions.
Debevoise & Plimpton LLP is acting as legal counsel to Brookfield Reinsurance in connection with the reinsurance transaction.
About Brookfield Reinsurance
Brookfield Asset Management Reinsurance Partners Ltd. (NYSE: BAMR; TSX: BAMR) operates a leading reinsurance business focused on providing capital-based and annuity solutions for insurance and reinsurance companies, and retirement risk transfer products for pension plan sponsors. Each Class A Exchangeable Share of Brookfield Reinsurance is exchangeable on the basis of one share for one Class A Limited Voting Share of Brookfield Asset Management Inc. (NYSE: BAM; TSX: BAM.A).
For more information, please visit our website at bamr.brookfield.com or contact:
Communications and media:
Phone. : (212) 618-3469
E-mail: [email protected]
Phone. : (416) 956-5141
E-mail: [email protected]
Brookfield Asset Management Reinsurance Partners Ltd.
Notice to readers
Brookfield Reinsurance is not making any offer or invitation of any kind through the communication of this press release and in no event should it be construed as a prospectus or advertisement.
This press release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the US Securities Act. 1933., the United States Securities Exchange Act of 1934 and the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend on or refer to future events or conditions, include statements that reflect management’s expectations regarding operations, activities, financial condition, expected financial results, the performance, outlook, opportunities, priorities, objectives, goals, ongoing objectives, strategies and prospects of Brookfield Reinsurance and its subsidiaries, as well as the outlook for the North American and international economies for the year current and subsequent periods. In particular, statements regarding Brookfield Reinsurance’s agreement with AEILIC to reinsure additional liabilities on a flow-based basis and Brookfield Reinsurance’s agreement to acquire the additional stake in AEL Holdco, including receipt of the required regulatory approvals, are forward-looking statements. In some cases, forward-looking statements may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “research”, “l ‘intention’, ” targets ‘,’ projects ‘,’ forecasts ‘or negative versions thereof and other similar expressions, or future or conditional verbs such as’ may ‘,’ will ‘,’ should ‘,’ would “and“ could. ”In particular, forward-looking statements contained in this press release include statements relating to the future state of the economy or the securities market and the anticipated future deployment of capital and financial earnings .
Although we believe that our anticipated future results, performance or achievements expressed or implied by forward-looking statements and information are based on reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information as they imply unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause Brookfield’s actual results, performance or achievements to differ materially from the anticipated future results, performance or achievements expressed or under- understood by these forward-looking statements and information.
Factors that could cause actual results to differ materially from those contemplated or suggested by forward-looking statements include, but are not limited to: (i) below-target investment returns; (ii) the impact or unintended impact of general economic, political and market factors in the countries in which we operate, including due to COVID-19 and the associated global economic shutdown; (iii) the behavior of financial markets, including fluctuations in interest rates and exchange rates; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing in these markets; (v) strategic actions, including arrangements; the ability to effectively complete and integrate acquisitions into existing operations and the ability to achieve expected benefits; (vi) changes in accounting policies and methods used to present the financial position (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulations and laws in the countries in which we operate; (xiii) government investigations; (xiv) litigation; (xv) changes in tax laws; (xvi) the ability to collect amounts due; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics / pandemics; (xviii) the possible impact of international conflicts and other developments, including terrorist acts and cyberterrorism; (xix) introduction, withdrawal, success and timing of business initiatives and strategies; (xx) failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) risks to health, safety and the environment; (xxii) maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain companies within our asset management operations; (xxiv) risks specific to our business sectors, including our real estate, renewable energies, infrastructure, private investments and other alternatives, including credits; and (xxv) the factors detailed from time to time in our documents filed with securities regulators in Canada and the United States.
We caution that the foregoing list of important factors that may affect future results is not exhaustive and that other factors could also adversely affect its results. Readers are urged to carefully consider the above-mentioned risks, as well as other uncertainties, factors and assumptions when evaluating forward-looking information, and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, Brookfield Reinsurance assumes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may result from new information, future events or otherwise. .
Past performance is neither indicative nor a guarantee of future results. There can be no assurance that comparable results will be obtained in the future, that future investments will be similar to the historical investments described in this document (due to economic conditions, the availability of investment opportunities or otherwise), that the targeted returns, diversification or asset allocation will be achieved or an investment strategy or investment objectives will be achieved.
Some of the information in this document is based on or derived from information provided by independent third party sources. Although Brookfield Reinsurance believes this information to be accurate as of the date it was produced and that the sources from which this information was obtained are reliable, Brookfield Reinsurance makes no representations or warranties, express or implied, as to relates to the accuracy, reasonableness or completeness of any of the information or assumptions on which such information is based, contained herein, including, but not limited to, information obtained from third parties.
Brookfield Asset Management Reinsurance Partners Ltd.