American Money Team, Inc. Announces Settlement to Provide its Annuity Business to MassMutual for $3.5 Billion

CINCINNATI–(Business enterprise WIRE)–Jan 27, 2021–

American Monetary Group, Inc. (NYSE: AFG) declared currently that it has entered into a definitive settlement to offer its Annuity company to Massachusetts Mutual Existence Insurance policy Firm (MassMutual) for $3.5 billion in dollars, issue to remaining closing changes to the extent that GAAP shareholders’ equity excluding accrued other complete revenue of the entities marketed may differ from $2.8 billion.

Less than the phrases of the settlement, which is anticipated to shut in the 2nd quarter of 2021, MassMutual will purchase Fantastic American Daily life Coverage Company (GALIC) and its two insurance subsidiaries, Annuity Investors Everyday living Insurance policy Corporation and Manhattan Countrywide Life Insurance Firm. At December 31, 2020, GALIC and its subsidiaries had roughly $40 billion of conventional preset and indexed annuity reserves. AFG expects to identify an right after-tax get on the sale of $620 million to $690 million ($7.10 to $7.90 for each AFG share) upon closing. Prior to completion of the transaction, AFG will obtain about $500 million in true estate-linked partnerships and straight owned authentic estate from GALIC.

S. Craig Lindner, AFG’s Co-Chief Govt Officer, commented, “This transaction presents an exceptional chance for GALIC and MassMutual to be one of the top companies of conventional preset and indexed annuities in big distribution channels and markets. In fact, MassMutual has between the greatest coverage monetary strength ratings, which we consider will result in enhanced distributor recruitment and policyholder retention. MassMutual’s motivation to create a subsidiary in Cincinnati makes sure that the arrangement will have no influence on GALIC’s associations with and commitments to its annuity policyholders and distribution associates. Importantly, we are very happy that this transaction will give compelling vocation opportunities for our annuity associates, and bring the operations of a perfectly-highly regarded insurance provider to the Larger Cincinnati business group.”

Mr. Lindner ongoing, “As Co-CEOs, Carl and I perspective capital administration as just one of our most vital priorities. AFG’s capital and liquidity will be significantly improved as a end result of the transaction. With a robust harmony sheet and sizeable surplus money, we will keep on to evaluate prospects for deploying AFG’s excess funds, including the possible for healthful, financially rewarding organic expansion, expansion of our Specialty Home & Casualty area of interest businesses by way of acquisitions and commence-ups that meet up with our focus on return thresholds, as very well as share repurchases and special dividends.”

Roger Crandall, Chairman, President and CEO, MassMutual commented: “With MassMutual’s enduring monetary toughness, broad expenditure abilities and conclusion-to-conclusion digital practical experience, we will construct on the superb leadership situation that the talented and committed Great American Life group has designed in excess of generations, enabling us to assist even more people today safe their long run and protect the kinds they really like.”

Skadden, Arps, Slate, Meagher & Flom LLP and Keating Muething & Klekamp PLL are performing as lawful advisors to AFG. Debevoise & Plimpton LLP is acting as lawful advisor to MassMutual.

About American Financial Team, Inc.

American Economic Team is an insurance coverage holding company, based in Cincinnati, Ohio. Via the functions of Wonderful American Coverage Group, AFG is engaged mostly in house and casualty insurance policies, concentrating on specialised commercial products for organizations, and in the sale of common set and indexed annuities in the retail, economical institutions, broker-supplier, and registered investment advisor marketplaces. Excellent American Insurance Group’s roots go back again to 1872 with the founding of its flagship company, Good American Insurance Firm.

About MassMutual

MassMutual is a foremost mutual lifetime insurance policies company that is operate for the benefit of its associates and collaborating policyowners. Established in 1851, the company has been constantly guided by a single constant objective: we assist persons safe their upcoming and protect the kinds they like. With a target on providing extended-phrase worth, MassMutual features a broad array of security, accumulation, prosperity management and retirement solutions and services.

Forward Seeking Statements

This press release includes sure statements that could be considered to be “forward-looking statements” within the which means of Part 27A of the Securities Act of 1933 and Portion 21E of the Securities Trade Act of 1934. All statements in this push launch not dealing with historical effects are forward-searching and are dependent on estimates, assumptions and projections. Illustrations of such forward-seeking statements consist of statements relating to: the Company’s anticipations about sector and other situations and their effect on potential rates, revenues, earnings, investment routines and the amount and timing of share repurchases recoverability of asset values envisioned losses and the adequacy of reserves for asbestos, environmental air pollution and mass tort statements amount changes and improved loss expertise.

Actual final results and/or financial condition could differ materially from individuals contained in or implied by these kinds of forward-wanting statements for a assortment of factors together with, but not minimal to: that AFG may well be unable to complete the proposed transaction mainly because, between other good reasons, conditions to the closing of the proposed transaction may well not be happy or waived, uncertainty as to the timing of completion of the proposed transaction, failure to understand the predicted positive aspects from the proposed transaction, alterations in economic, political and economic circumstances, which includes changes in curiosity and inflation rates, forex fluctuations and prolonged financial recessions or expansions in the U.S. and/or abroad efficiency of securities marketplaces, which includes the price of fairness index selections new laws or declines in credit history quality or credit history scores that could have a product effects on the valuation of securities in AFG’s expenditure portfolio the availability of funds adjustments in insurance policies law or regulation, like modifications to capital needs the outcomes of the COVID-19 outbreak, such as the consequences on the international and countrywide overall economy and credit history marketplaces, legislative or regulatory developments influencing the insurance policies market, quarantines or other journey or health-related restrictions improvements in the legal setting influencing AFG or its shoppers tax law and accounting improvements stages of natural catastrophes and severe climate, terrorist things to do (including any nuclear, biological, chemical or radiological situations), incidents of war or losses ensuing from pandemics, civil unrest and other significant losses disruption prompted by cyber-assaults or other technologies breaches or failures by AFG or its business partners and company providers, which could negatively effect AFG’s small business and/or expose AFG to litigation growth of insurance plan decline reserves and institution of other reserves, specially with regard to amounts affiliated with asbestos and environmental statements availability of reinsurance and skill of reinsurers to pay out their obligations traits in persistency and mortality aggressive pressures the potential to get hold of ample premiums and policy terms improvements in AFG’s credit rating ratings or the financial strength scores assigned by significant ratings companies to AFG’s operating subsidiaries the influence of the problems in the international financial marketplaces and the world wide economic system relating to AFG’s intercontinental functions and other variables discovered in AFG’s filings with the Securities and Exchange Commission.

The ahead-wanting statements herein are made only as of the date of this press launch. The Firm assumes no obligation to publicly update any forward-wanting statements.

View resource edition on businesswire.com:https://www.businesswire.com/information/house/20210127005961/en/

Make contact with: Diane P. Weidner, IRC

Vice President – Investor & Media Relations

(513) 369-5713Web-sites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

Search phrase: MASSACHUSETTS OHIO UNITED STATES NORTH America

Industry Keyword: Specialist Services Insurance coverage FINANCE

Resource: American Fiscal Group, Inc.

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PUB: 01/27/2021 05:00 PM/DISC: 01/27/2021 05:00 PM

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