Finance

Brookfield Reinsurance’s Assets Approach $100 Billion Two Years After Major American National Insurance Acquisition

In 2022, Brookfield Reinsurance acquired American National Insurance in a $5.1 billion all-cash deal. This acquisition has catalyzed meaningful growth for Brookfield Reinsurance over the past two years. The company has rapidly expanded its assets under management since its founding in 2020, pursuing sizeable acquisitions of well-established insurance firms to diversify across numerous sectors like annuities, property, casualty coverage, and pension risk transfer. Brookfield Reinsurance’s asset base is projected to surpass the $100 billion threshold by 2024, less than five years from its inception.

The American National Insurance acquisition mainly bolstered Brookfield Reinsurance’s capacity for direct insurance alongside its initial reinsurance focus. American National Insurance furnishes life insurance, annuities, and property and casualty insurance across all 50 states. Integrating its extensive geographical reach and multifaceted product portfolio amplified Brookfield Reinsurance’s own service diversity and market footprint. Brookfield Reinsurance CEO Sachin Shah commented, “We are excited to partner with [American National Insurance’s] management team…as we look to grow the business further.” American National Insurance was subsequently honored by Forbes as one of America’s Best Insurance Companies for 2024 based on superb service quality, customer satisfaction, and policy value.

On the heels of the American National Insurance deal, Brookfield Reinsurance sought additional growth by obtaining Argo Group International Holdings in an all-cash $1.1 billion acquisition finalized in November 2023. Adding Argo’s industry-leading U.S. specialty platform expanded Brookfield Reinsurance’s capabilities in the property and casualty insurance arena, complementing its widening offerings. Shah noted, “Argo’s leading U.S. specialty platform adds a foundational piece to our expanding U.S. P&C operations.”

Furthermore, Brookfield Reinsurance is primed to finalize its purchase of American Equity Investment Life Holding Company in 2024, a roughly $4.3 billion agreement. American Equity Investment Life Holding will improve Brookfield’s stance within retirement income solutions by focusing on annuities. Brookfield Reinsurance managing partner Jon Bayer acknowledged, “Given the complementary nature of [American Equity Investment Life Holding’s] leading fixed annuity business to our existing platform, we expect to accelerate growth.” Once this acquisition concludes, Brookfield Reinsurance will have utilized over $10 billion in capital expenditure to enlarge its enterprise. Its asset holdings will eclipse $100 billion under management.

Strategically integrating these acquisitions aims to construct a more capable, efficient, and far-reaching holding structure capitalizing on the distinct advantages of each acquired firm to generate returns for policyholders and investors. Connecting the expertise and investment portfolios of Brookfield Asset Management adds further value. Shah stated, “As our business grows to $100 billion in assets in the near term, we are focused on further scaling across our core business lines, managing risk, and driving investment yields and returns to our shareholders.”

Ultimately, acquiring and enhancing the operations of prosperous insurance companies allows them access to Brookfield Corporation’s diverse investment opportunities, thereby boosting their competitiveness to deliver shareholder profits while still serving policyholders. Brookfield Reinsurance’s long-term vision spotlights enabling the organic expansion of these acquired businesses over time using their innate leadership talents and operational strengths. Identifying additional opportunities in the dynamic insurance landscape also plays a role in this prudent growth strategy.

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