In 2022, Brookfield Reinsurance acquired American National Insurance, a long-standing multiline insurer, in an all-cash $5.1 billion deal. This acquisition has proven instrumental for Brookfield as it continues its strategic growth trajectory within the insurance industry. Established in 2020 as a publicly traded holding company, Brookfield Reinsurance has swiftly expanded its asset base, projected to surpass $100 billion in 2024.
Initially, Brookfield’s model centered on reinsurance solutions that empower insurance companies to control risks and liabilities better. However, Brookfield’s acquisitions of insurers like American National have broadened its offerings across various sectors like annuities, property and casualty, and pension risk transfer.
The American National deal specifically expanded Brookfield’s direct insurance capabilities and added diverse products spanning life insurance, annuities, and property and casualty. With American National’s national footprint and multifaceted portfolio, Brookfield gained wider reach and deeper specialization. Brookfield’s CEO highlighted shared ambitions to maintain growth and strong franchises benefitting all stakeholders.
Since joining Brookfield, American National earned accolades as a 2024 Forbes Best Insurance Company based on exceptional service, customer satisfaction, and value. Brookfield subsequently acquired Argo Group International Holdings’ industry-leading specialty platform in a $1.1 billion transaction, augmenting previous property and casualty growth. Most recently, Brookfield Reinsurance moved to finalize its $4.3 billion acquisition of annuity-focused American Equity Investment Life Holding Company.
This sequence of strategic deals deployed over $10 billion of capital to expand Brookfield Reinsurance’s scope and scale, managing north of $100 billion in assets upon the forthcoming American Equity closing. Thorough integration aims to optimize operations across acquisitions, directing specialized strengths toward the centralized holding company’s efficiency, returns, and competitiveness. Additionally, Brookfield Reinsurance can utilize the parent company’s resources, Brookfield Asset Management.
Ultimately, Brookfield Reinsurance aspires to foster growth for policyholders and shareholders by owning and improving successful insurance companies. Acquired firms gain investment opportunities thanks to Brookfield Corporation’s partnership. The long-view strategy prioritizes acquired companies’ lasting success through organic expansion and responding to the insurance market’s evolution.
Brookfield CEO Sachin Shah said American National represented a significant step toward insurance goals, given its stable indexed growth and disciplined underwriting approach. Brookfield intends to maintain this strong franchise. Similarly, Brookfield praised Argo’s specialty leadership and looked forward to collaboration on core growth. Finally, Brookfield called American Equity an innovative market leader whose annuity specialization complements existing retirement solutions. Ongoing leadership should meet policyholder expectations during partnership pursuing growth.
