SPRINGFIELD, Mass .– (BUSINESS WIRE) – Massachusetts Mutual Life Insurance Company (“MassMutual”) announced today that it has entered into a definitive agreement with American Financial Group, Inc. (NYSE: AFG) to purchase its wholly owned subsidiary, Great American Life Insurance Company (“Great American “Closed Life”) and other subsidiaries and affiliates that primarily offer traditional fixed income and fixed indexed annuity products.
The purchase price is $ 3.5 billion, subject to an adjustment upon completion. The transaction is expected to close in the second quarter of 2021, subject to regulatory and other necessary approvals. Upon completion of the transaction, Great American Life will operate as an independent subsidiary of MassMutual.
Great American Life is a highly respected leader in the bond market known for its competitive suite of products, excellent customer service, and strong sales relationships with banks, independent agents and independent broker-dealers. This transaction significantly advances MassMutual’s strategy as Great American Life complements the company’s existing annuity business by expanding and diversifying its product and distribution capabilities and enabling MassMutual to reach more customers in need of lifelong income solutions. In addition, Great American Life will provide MassMutual with another diversified revenue stream that will help deliver value to policyholders and position the company for long-term growth.
“This acquisition is a great fit for MassMutual to expand our product offering, expand our sales and generate additional revenue. This will allow us to build a true lifelong franchise and provide continued value to our policyholders and customers,” said Roger Crandall. Chairman, President and CEO of MassMutual. “With MassMutual’s continued financial strength, extensive investment opportunities and extensive digital experience, we will build on the exceptional leadership that the talented and dedicated Great American Life team has built over generations to help more people keep their safety Future and protect those who love it. ”
S. Craig Lindner, AFG Co-Chief Executive Officer, commented, “This transaction offers Great American Life and MassMutual an excellent opportunity to be a leading provider of traditional fixed and indexed annuities in key distribution channels and markets. In fact, MassMutual has one of the highest ratings for insurance financial strength that we believe will result in improved distributor recruitment and policyholder retention. ”
Great American Life will continue to be led by its current President, Mark Muething, and its 600+ employees will continue to be headquartered in Cincinnati as part of the transaction.
Debevoise & Plimpton LLP served as legal advisor to MassMutual. Skadden, Arps, Slate, Meagher & Flom LLP and Keating Muething & Klekamp PLL were legal advisors to AFG.
MassMutual is a leading mutual life insurance company operated for the benefit of its members and participating policyholders. Founded in 1851, the company has been continuously guided by one consistent goal: We help people secure their future and protect those who love them. MassMutual is focused on delivering long-term value and offers a wide range of protection, accumulation, wealth management and retirement products and services. Please visit massmutual.com for more information.
About American Financial Group, Inc.
American Financial Group is an insurance holding company based in Cincinnati, Ohio. Through the operations of the Great American Insurance Group, AFG is primarily active in property and casualty insurance, with a focus on specialized commercial products for companies, as well as the sale of traditional fixed and indexed annuities in retail, financial institutions, brokers and traders, Investment Adviser Markets. The Great American Insurance Group’s roots date back to 1872 when the flagship Great American Insurance Company was founded.