American Fiscal Team, Inc. Announces Agreement to Sell its Annuity Small business to MassMutual for $3.5 Billion

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

American Economic Team, Inc. (NYSE: AFG) introduced right now that it has entered into a definitive settlement to offer its Annuity small business to Massachusetts Mutual Lifetime Insurance coverage Corporation (MassMutual) for $3.5 billion in money, topic to closing closing adjustments to the extent that GAAP shareholders’ equity excluding accumulated other complete cash flow of the entities marketed differs from $2.8 billion.

Below the terms of the agreement, which is expected to near in the second quarter of 2021, MassMutual will purchase Fantastic American Everyday living Insurance plan Corporation (GALIC) and its two insurance policies subsidiaries, Annuity Buyers Lifetime Insurance coverage Firm and Manhattan National Daily life Insurance Organization. At December 31, 2020, GALIC and its subsidiaries experienced about $40 billion of traditional fastened and indexed annuity reserves. AFG expects to realize an right after-tax obtain on the sale of $620 million to $690 million ($7.10 to $7.90 per AFG share) on closing. Prior to completion of the transaction, AFG will get about $500 million in actual estate-linked partnerships and specifically owned serious estate from GALIC.

S. Craig Lindner, AFG’s Co-Chief Government Officer, commented, “This transaction presents an outstanding prospect for GALIC and MassMutual to be a single of the main suppliers of standard preset and indexed annuities in significant distribution channels and marketplaces. In reality, MassMutual has amongst the best insurance monetary power ratings, which we consider will final result in increased distributor recruitment and policyholder retention. MassMutual’s commitment to create a subsidiary in Cincinnati makes sure that the settlement will have no effects on GALIC’s associations with and commitments to its annuity policyholders and distribution partners. Importantly, we are very delighted that this transaction will give compelling profession options for our annuity associates, and carry the operations of a nicely-highly regarded insurance company to the Larger Cincinnati business enterprise group.”

Mr. Lindner continued, “As Co-CEOs, Carl and I see capital administration as just one of our most crucial priorities. AFG’s money and liquidity will be considerably enhanced as a end result of the transaction. With a solid stability sheet and considerable extra funds, we will carry on to appraise prospects for deploying AFG’s excess capital, which include the prospective for nutritious, worthwhile natural and organic growth, expansion of our Specialty House & Casualty area of interest organizations through acquisitions and start off-ups that meet our goal return thresholds, as very well as share repurchases and unique dividends.”

Roger Crandall, Chairman, President and CEO, MassMutual commented: “With MassMutual’s enduring economical energy, broad investment decision capabilities and close-to-end electronic expertise, we will construct on the remarkable management place that the proficient and focused Good American Daily life workforce has constructed in excess of generations, enabling us to help even additional individuals safe their foreseeable future and safeguard the kinds they love.”

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

About American Economical Team, Inc.

American Monetary Team is an insurance coverage holding organization, based in Cincinnati, Ohio. By way of the functions of Great American Insurance coverage Group, AFG is engaged principally in assets and casualty insurance coverage, concentrating on specialized business solutions for companies, and in the sale of regular set and indexed annuities in the retail, economical institutions, broker-vendor, and registered financial commitment advisor marketplaces. Fantastic American Insurance Group’s roots go back again to 1872 with the founding of its flagship firm, Wonderful American Coverage Company.

About MassMutual

MassMutual is a major mutual lifestyle insurance business that is operate for the benefit of its users and taking part policyowners. Started in 1851, the firm has been continually guided by a single steady goal: we aid persons protected their long run and protect the kinds they love. With a emphasis on delivering prolonged-expression value, MassMutual offers a wide selection of security, accumulation, prosperity administration and retirement products and solutions.

Ahead Searching Statements

This push release contains particular statements that might be deemed to be “forward-searching statements” in the which means of Area 27A of the Securities Act of 1933 and Segment 21E of the Securities Trade Act of 1934. All statements in this press launch not dealing with historical effects are ahead-searching and are centered on estimates, assumptions and projections. Examples of this sort of forward-looking statements consist of statements relating to: the Company’s anticipations relating to current market and other ailments and their impact on long run premiums, revenues, earnings, investment pursuits and the quantity and timing of share repurchases recoverability of asset values predicted losses and the adequacy of reserves for asbestos, environmental air pollution and mass tort statements level variations and improved reduction working experience.

Actual benefits and/or economic situation could differ materially from those contained in or implied by these types of forward-looking statements for a range of factors which include, but not restricted to: that AFG may be not able to finish the proposed transaction since, among the other reasons, circumstances to the closing of the proposed transaction could not be glad or waived, uncertainty as to the timing of completion of the proposed transaction, failure to comprehend the expected added benefits from the proposed transaction, changes in money, political and financial disorders, which include adjustments in curiosity and inflation charges, currency fluctuations and prolonged financial recessions or expansions in the U.S. and/or abroad general performance of securities markets, together with the price tag of equity index choices new legislation or declines in credit rating top quality or credit ratings that could have a materials effects on the valuation of securities in AFG’s financial investment portfolio the availability of cash variations in insurance coverage legislation or regulation, such as modifications to funds necessities the effects of the COVID-19 outbreak, like the effects on the intercontinental and nationwide economic climate and credit score markets, legislative or regulatory developments impacting the insurance industry, quarantines or other journey or overall health-linked limits alterations in the legal natural environment affecting AFG or its clients tax legislation and accounting improvements ranges of organic catastrophes and significant weather, terrorist things to do (including any nuclear, organic, chemical or radiological functions), incidents of war or losses resulting from pandemics, civil unrest and other key losses disruption caused by cyber-assaults or other know-how breaches or failures by AFG or its company companions and provider suppliers, which could negatively impact AFG’s company and/or expose AFG to litigation progress of insurance coverage decline reserves and institution of other reserves, specially with respect to amounts associated with asbestos and environmental claims availability of reinsurance and skill of reinsurers to pay their obligations tendencies in persistency and mortality aggressive pressures the skill to obtain adequate costs and coverage terms alterations in AFG’s credit rating scores or the monetary toughness scores assigned by big scores agencies to AFG’s functioning subsidiaries the influence of the problems in the global money marketplaces and the worldwide financial state relating to AFG’s global functions and other elements recognized in AFG’s filings with the Securities and Exchange Commission.

The forward-hunting statements herein are designed only as of the date of this press launch. The Firm assumes no obligation to publicly update any forward-seeking statements.

See supply variation on businesswire.com:https://www.businesswire.com/information/household/20210127005961/en/

Contact: Diane P. Weidner, IRC

Vice President – Trader & Media Relations

(513) 369-5713Web sites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

Key phrase: MASSACHUSETTS OHIO UNITED STATES NORTH The united states

Field Key word: Expert Products and services Coverage FINANCE

Source: American Financial Group, Inc.

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

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