GLENMONT — American National Group, Inc., and Brookfield Asset Management Reinsurance Partners Ltd. have entered into a definitive merger agreement whereby Brookfield Reinsurance will acquire American National in an all-cash transaction valued at approximately $5.1 billion.
Brookfield Reinsurance said on Monday, Aug. 9 that it intends to maintain American National’s offices at Glenmont, where the insurance company employs approximately 570 people. The global asset management company said it also intends to keep American National’s headquarters in Galveston, Texas, along with its offices in League City, Texas and Springfield, Missouri.
The merger is expected to close in the first half of 2022. In the joint statement announcing the merger, Brookfield Reinsurance CEO Sachin Shah said he looks forward to continuing American National’s longstanding involvement with its local communities.
“The acquisition of American National represents a significant milestone in the continued expansion of our insurance business,” said Shah. “American National’s management team has a strong track record of stable growth and disciplined underwriting. We are excited to partner with them, and the dedicated American National employee base and distribution partners, as we look to further grow the business and maintain a strong franchise for the benefit of all stakeholders.”
The buyout is subject to certain customary closing conditions, including antitrust clearance and receipt of insurance regulatory approvals. The merger received unanimous approval from American National’s Board of Directors.
Following the execution of the merger agreement, stockholders representing more than a majority of the issued and outstanding shares of American National common stock delivered stockholder written consents adopting and approving the merger agreement. Each share of American National common stock will be converted into $190.00 at the closing of the merger, a 55 percent premium to the unaffected share price of $122.56 on May 11, and another 24.7 percent premium over American National’s 30-day volume-weighted average price as of Aug. 6.
Market speculators reported in May that American National was exploring options, including a company sale. The insurer released a statement to say the company could not comment, falling short of denying market rumors.
“This is an energizing moment in American National’s history. Our two companies share a long-term view of building strong, enduring businesses,” said Jim Pozzi, President and Chief Executive Officer of American National. “The transaction provides clear and immediate value for our stockholders at an attractive premium.”
American National’s presence on Route 9W in Glenmont is preceded by that of Farm Family, which served as a friendly neighbor to Glenmont Elementary students for generations.
American National Group, Inc. is the parent company of the American National companies, which include American National Insurance Company and its insurance affiliates. American National Insurance Company, founded in 1905 is headquartered in Galveston, Texas. American National offers a broad line of products and services, which include life insurance, annuities, health insurance, credit insurance, pension products and property and casualty insurance for personal lines, agribusiness and certain commercial exposures. The American National companies operate in all 50 states.
Brookfield Asset Management Reinsurance Partners Ltd. operates a leading reinsurance business focused on providing capital-based and annuity solutions for insurance and reinsurance companies, and pension risk transfer products for pension plan sponsors.