Brookfield Asset Management Reinsurance Partners announced the closing of its previously-announced transaction to reinsure up to $10bn of annuity products issued by American Equity Investment Life Insurance Company, a subsidiary of American Equity Investment Life Holding Company.

Under the agreement, Brookfield Reinsurance has reinsured a block of approximately $4 billion of in-force policies, and will reinsure up to an additional approximately $6bn of AEILIC’s “IncomeShield” or other mutually agreed liabilities issued by AEL on a flow basis.

Brookfield Reinsurance holds an approximate 9.5% equity interest in AEL and has agreed to purchase additional shares of AEL’s common stock for up to a total equity interest of 19.9% (and not less than a 15% equity interest), subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions.

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Brookfield Asset Management Reinsurance Partners 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. Each class A exchangeable share of Brookfield Reinsurance is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Asset Management.

Source: Global Newswire

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