Willkie advised Brookfield on the insurance aspects of the transaction.
On October 18, Brookfield Asset Management Inc. (NYSE: BAM, TSX: BAM.A) announced a strategic partnership with American Equity Investment Life Holding Company (AEL) (NYSE: AEL), a leading retirement planning annuity provider, for the reinsurance of $5 billion of existing liabilities and up to $5 billion of new sales of American Equity’s IncomeShield or similar fixed index annuity products.
As part of this partnership, Brookfield will acquire a 19.9% ownership interest in the common shares of American Equity to take place in two stages. Brookfield will also receive one seat on American Equity’s Board of Directors following the initial equity investment. American Equity’s Board has authorized the repurchase of up to $500 million of common shares to be funded with the proceeds of the Brookfield equity investment and cash on hand. The repurchase is expected to offset dilution from the issuance of common shares to Brookfield.
American Equity will receive access to Brookfield investments in targeted asset classes as part of the strategic partnership. Brookfield’s position as a leading alternative asset manager with significant scale in asset classes generating strong risk adjusted returns, will allow American Equity shareholders and policyholders the opportunity to benefit from exposure to differentiated alternative asset strategies with long-term, contractual cash flows and deploy significant capital into proprietary Brookfield investments.
American Equity Investment Life Holding Company, through its wholly-owned subsidiaries, is a leading issuer of fixed index annuities through independent agents, banks and broker-dealers. The company is headquartered in West Des Moines, Iowa.
Brookfield Asset Management is a leading global alternative asset manager with approximately $550 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit.
The Willkie team included partners Gregory Astrachan, Alexander Dye, Elizabeth Bannigan, Leah Campbell and Christopher Peters.