American Equity Annuity CEO Confirms Unsolicited $3 Billion Offer

American Equity Annuity Logo 1200 x 1200

Mass Mutual and Athene Partner To Make a $3 Billion Buyout Offer for American Equity Annuity

October 1st, 2020 American Equity Annuity President & CEO, Anant Bhalla, confirms they did receive an unsolicited and nonbinding proposal from Athene and MassMutual to acquire American Equity Annuity.  “Our Board, in consultation with independent financial and legal advisors, is carefully reviewing the proposal to determine the best course of action for our company and shareholders, as well as our employees, policyholders and stakeholders,” wrote Anant Bhalla.

“As most of you know, we have begun to implement a new strategic plan, AEL 2.0, which is designed to drive exceptional performance across our business, create new opportunities for you (independent producers), and unlock additional shareholder value.”

Bhalla continues, “We are well positioned to capture significant growth opportunities presented by the increasing number of Americans who desire attractive fixed index annuity products offering principal protection and guaranteed lifetime income. We are confident our AEL 2.0 strategy will enable us to go to market with greater strength, urgency and savvy, doubling down on our business development efforts already well underway.”

As part of that plan, we recently announced an agreement in principle to create new reinsurance and asset management entities with leading global alternative investment firm Värde Partners and insurance solutions provider Agam Capital Management.  The partnership would enable us to capture income from the management of insurance assets, and gives us access to differentiated asset origination to allow American Equity Annuity to offer a variety of new, attractive fixed index annuity products to customers.

Bhalla closes with, “While our Board reviews the acquisition proposal, we remain focused on executing our strategy and continuing to serve your needs. If you are asked about this news by your clients, you can assure them that it is business as usual and nothing has changed regarding the exceptional service we are dedicated to providing.”

Both Anant and Ron Grensteiner, American Equity Annuity President, singed the letter that was emailed out to the independent salesforce earlier today.

Anant bhalla signature

Anant Bhalla
President & Chief Executive Officer
American Equity Investment Life Holding Company

Ron grensteiner signature

Ron Grensteiner
President
American Equity Investment Life Insurance Company

American Equity Annuity States Terms of bid in a Press Release

At 9:09, October 1, 2020 American Equity Annuity issued a press release confirming that it received an unsolicited non-binding proposal from Athene Holding Ltd. (NYSE: ATH) with Massachusetts Mutual Life Insurance Company to acquire all outstanding common shares of American Equity Annuity for $36.00 per share in cash.

Consistent with its fiduciary responsibilities, American Equity Annuity’s Board of Directors is carefully reviewing the unsolicited proposal in consultation with financial and legal advisors to determine the course of action it believes is in the best interests of the Company and its shareholders and other stakeholders. American Equity shareholders need take no action at this time.

J.P. Morgan and Morgan Stanley are serving as financial advisors to American Equity Annuity and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel.

American Equity Annuity Receives Bid Valued Over $3 Billion

At $36 per share the bid amounts to a value greater than $3 Billion. American Equity has a current market value of about $2 billion, and its shares closed Wednesday at $21.99. 

The proposed deal is a “bet that the small Iowa insurer’s retirement-income products will continue to be popular with conservative savers,” according to a Wall Street Journal report. Massachusetts Mutual Life Insurance Co. and Athene Holding Ltd., parent company of Athene USA in West Des Moines, offered American Equity $36 a share in cash on Sept. 8, according to a letter sent to American Equity CEO Anant Bhalla, the Journal reported. American Equity issued a press release this morning confirming the unsolicited offer. At that price, the bid would amount to a value of more than $3 billion. American Equity has a current market value of about $2 billion, and its shares closed Wednesday at $21.99. 

According to a copy of that letter filed by American Equity Annuity with the Securities and Exchange Commission, the offer calls for Athene to acquire the holding company and assume all of American Equity Annuity’s debt and preferred obligations, while MassMutual would acquire and retain the insurance subsidiaries and all of the employees, distribution, brands and infrastructure of the company. 

MassMutual would reinsure 80% of the existing balance sheets of the insurance subsidiaries to Athene and retain the remaining 20%.  

American Equity Annuity Management Would Continue to Run Domestic Annuity Business Under Deal

Under MassMutual’s ownership, it is envisioned that the current American Equity Annuity management team will continue to run the business and further strengthen its leadership position in the domestic Fixed Index Annuity marketplace,” MassMutual’s and Athene’s leaders said in the letter.

In 2019, American Equity Annuity was fifth in U.S. Individual Fixed Index Annuity Sales. Allianz, Athene, AIG, and Nationwide are the only insurers who sold more according to the Secure Retirement Institute’s Annual Annuity Sales Survey.

American EquityRating
6000 Westown Pkwy, West Des Moines, IA 50266
A.M. Best Rating (15 possible ratings)A- (4)
Fitch (21 possible ratings)A- (7)
Standard & Poor's (Financial Strength, 20 Ratings)A- (7)
Comdex (percentile of all rating companies)60

About American Equity Annuity Company

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. American Equity Investment Life Holding Company, a New York Stock Exchange listed company (NYSE: AEL), is headquartered in West Des Moines, Iowa. For more information, please visit www.american-equity.com

Forward Looking Statements

This article and any oral related statements may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements may relate to strategic alternatives, future operations, strategies, financial results or other developments, and are subject to assumptions, risks and uncertainties. 

Statements such as “guidance”, “expect”, “anticipate”, “believe”, “goal”, “objective”, “target”, “will”, “may”, “should”, “estimate”, “projects”, “outlook”, “potential”, “opportunity”, “position” or similar words, as well as specific projections of future events or results qualify as forward-looking statements. Factors that may cause our actual decisions or results to differ materially from those contemplated by these forward-looking statements can be found in the company’s Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. 

Forward-looking statements speak only as of the date the statement was made and the company undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently anticipated by the company will not materially adversely affect our results of operations. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf.

Get a Free Annuity Quote

Have a personalized annuity quote sent directly to your inbox within 2 hours.
Kiara Caudill

Kiara Caudill

I spent the first 10 years of my career as a clinical mental health therapist and I saw firsthand that finances play a large role in one’s happiness. A good financial plan is not only important to your financial health it’s also important to your mental health. I approach financial planning from a behavioral finance perspective using a goals-based approach. Kiara holds a B.A. Degree in Psychology from Goshen College and an M.A. in Clinical Mental Health Counseling from Valparaiso University.

Search Our Website

About Us

We are financial planners based in Fishers, Indiana. We are annuity experts and specialize in helping pre-retirees (and those already enjoying it) make the transition from accumulation to distribution in retirement.

We wanted to expand our reach so we incorporated My Annuity Store, Inc. and launched the online annuity platform, myannuitystore.com, on January 7, 2020. Our mission is to provide all Americans access to independent and unbiased annuity and retirement planning information.

Our Recent Posts

Nationwide Peak 10 Annuity Review
Annuity Reviews

Unbiased Nationwide Peak 10 Annuity Review

Nationwide Peak 10 Annuity Reviewed This Nationwide Peak 10 Annuity Review will cover: Nationwide’s Financial Ratings Index Annuity Basics Product Highlights Income rider(s) Historical Performance Pros and Cons of Nationwide Peak 10 Annuity The Nationwide Peak 10 Annuity is the latest of many innovative annuities

How Much Money Do I Need to Retire? Picture of white yacht on water with My Annuity Store, Inc. Logo on white sail.
Annuity Companies

Brighthouse Annuity Ratings & Review

Brighthouse Annuity Ratings Brighthouse Financial is rated A by AM Best and Fitch. Brighthouse Annuity also boasts a Moody’s rating of A3 and an A+ rating from Standard and Poor’s. According to their balance sheet, as of December 20 2020, the firm had $248 Billion

Allianz 222 Brochure Cover: Featured Image of Allianz 222 Review by My Annuity Store, Inc.
Annuity Reviews

An Unbiased Allianz 222 Review

Allianz 222 Review: April 2021 In this Allianz 222 Review we will cover: Allianz Financial Ratings Product Highlights Fees Indexes/ Crediting Strategies Rates Allianz 222 Pros and Cons Allianz Financial Ratings Before we dive into our Allianz 222 Review we want to cover the financial

Drop Us a Note

Get help when you want it.

We Make Annuities Easy Because Retirement Isn't Supposed to Be Hard

Red Map Location Icon Box Link with My Annuity Store, Inc. address

Address

10497 Balroyal Ct.,
Fishers, IN 46037

Red Icon of a Presentation Board links to My Annuity Store Calendar

Calendar

Schedule a Meeting.

envelope with @ symbol for email address

Email

info@myannuitystore.com
sales@myannuitystore.com

Red Cellular Phone Line Icon Linking to Schedule a Consultation Page

Phone

+1855-583-1104

Scroll to Top

Free Annuity Quote

Stay Informed

Annuity Rates Change Frequently – Sign up to receive monthly annuity rate updates.