Brookfield’s Strategic Partnership with American Equity, Including Reinsurance of $10 Billion in Fixed Index Annuity Liabilities and Equity Investment

On October 18, 2020, Brookfield Asset Management Inc. (“Brookfield”) and American Equity Investment Life Holding Company (“American Equity”) jointly announced that they have entered into a strategic partnership under which Brookfield will reinsure $5 billion of existing liabilities and up to an incremental $5 billion of new sales of American Equity’s IncomeShield or similar fixed index annuity products. As part of the strategic partnership, Brookfield will acquire a 19.9% ownership interest in the common shares of American Equity, which will take place in two stages: an initial purchase of a 9.9% equity interest at $37.00 per share promptly following Hart-Scott-Rodino approval, and a second purchase of an incremental 10.0% equity interest, at the greater value of $37.00 per share or adjusted book value per share. The transaction values the outstanding equity of American Equity at approximately $3.4 billion. Brookfield will also receive one seat on American Equity’s Board of Directors following the initial equity investment. Cravath is representing Brookfield in connection with the partnership.

The Cravath team is led by partner Richard Hall and includes associate Victoria L. Romvary on M&A matters; and senior attorney Jesse M. Weiss and associate Benjamin G. Joseloff on regulatory matters.