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.
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