MassMutual will acquire the annuity business, as well as other subsidiaries and affiliated entities, which primarily offer traditional fixed and fixed indexed annuity products.
The transaction is expected to close in the second quarter of 2021, subject to regulatory and other necessary approvals.
After closing, Great American Life will operate as an independent subsidiary of MassMutual.
Great American Life is expected to complement MassMutual’s existing annuity business by broadening its product and distribution capabilities.
In addition, the acquisition will provide MassMutual with another diversified source of earnings, helping to position it for long-term growth.
“This acquisition is an excellent strategic fit for MassMutual that will broaden our product offerings, expand our distribution, and generate additional earnings, allowing us to build a true lifetime income franchise and deliver ongoing value to our policyowners and customers,” said Roger Crandall, Chairman, President and CEO, MassMutual.
“With MassMutual’s enduring financial strength, broad investment capabilities, and end-to-end digital experience, we will build on the outstanding leadership position that the talented and dedicated Great American Life team has built over generations, enabling us to help even more people secure their future and protect the ones they love.”
S. Craig Lindner, AFG’s Co-Chief Executive Officer, also commented, “This transaction presents an excellent opportunity for Great American Life and MassMutual to be one of the leading providers of traditional fixed and indexed annuities in major distribution channels and markets. In fact, MassMutual has among the highest insurance financial strength ratings, which we believe will result in enhanced distributor recruitment and policyholder retention.”
Great American Life will continue to be led by its current president, Mark Muething, and its more than 600 employees will remain headquartered in Cincinnati as part of the transaction.
Debevoise & Plimpton LLP served as legal counsel to MassMutual. Skadden, Arps, Slate, Meagher & Flom LLP and Keating Muething & Klekamp PLL served as legal counsel to AFG.
Source: Reinsurance News
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