Brookfield Broadcasts Strategic Partnership with American Fairness Life Establishes Brookfield as Cornerstone Investor and Reinsurance Counterparty of Main Retirement Planning Annuity Supplier


BROOKFIELD, NEWS, Oct. 18, 2020 (GLOBE NEWSWIRE) — Brookfield Asset Administration Inc. (“Brookfield”) (NYSE: BAM, TSX: BAM.A) right this moment introduced a strategic partnership with American Fairness Funding Life Holding Firm (“AEL”) (NYSE: AEL), a number one retirement planning annuity supplier. The partnership establishes Brookfield as a 19.9% cornerstone investor and reinsurance counterparty of AEL, supporting continued development alternatives for the enterprise.

AEL specializes within the sale, by impartial brokers, banks, and dealer sellers, of mounted index annuities. These funding merchandise help people in preserving their retirement {dollars} and supply a safe, predictable revenue.

The partnership displays a significant funding for Brookfield in one of many main originators for mounted index annuities and has the next strategic elements:

  • Brookfield will purchase a 19.9% possession curiosity within the frequent shares of AEL in two phases: an preliminary buy of a 9.9% curiosity at $37.00 per share promptly following required regulatory approval, and a second buy of an incremental 10.0% curiosity, on the larger worth of $37.00 per share or adjusted e book worth per share. The second fairness funding is topic to finalization of sure reinsurance settlement phrases, receipt of relevant regulatory approvals and different closing situations and is anticipated to shut within the first half of 2021. Brookfield will obtain one seat on American Fairness’s Board of Administrators following the preliminary fairness funding.
  • A reinsurance transaction by which Brookfield’s reinsurance and annuity subsidiary, Brookfield Asset Administration Companions, will reinsure as much as $10 billion in annuity liabilities, together with an preliminary $5 billion of current liabilities and as much as an incremental $5 billion of future enterprise when written.
  • AEL will obtain distinctive entry to Brookfield’s enticing various asset methods, which positions AEL to generate sustained returns in a low rate of interest setting.

Sachin Shah, Brookfield’s Chief Funding Officer, stated: “We’re happy to be investing in American Fairness and to companion with the enterprise in reinsurance because it grows its main place as a retirement planning annuity supplier. This transaction represents a significant funding for us within the enticing U.S. insurance coverage market and we imagine our various asset methods can ship long-term worth to the corporate. We sit up for supporting American Fairness in advancing its AEL 2.Zero technique which is well-positioned to create worth for all stakeholders.”

Anant Bhalla, President and Chief Govt Officer of American Fairness, stated: “This compelling strategic transaction, which now we have been discussing with Brookfield since March, demonstrates the substantial shareholder worth we’re creating by execution of our AEL 2.Zero technique. By partnering with a world-class asset administration and funding agency like Brookfield, we’re accelerating the implementation of our technique to be the main, customer-focused annuity supplier with best-in-class capabilities throughout all the insurance coverage worth chain, from distribution to asset administration. This partnership accelerates the transformation of our enterprise towards a ROA mannequin from our historic give attention to ROE, unlocks vital new funding alternatives, and allows us to ship vital worth to our shareholders and policyholders.” 

Brookfield Asset Administration
Brookfield Asset Administration is a number one world various asset supervisor with roughly US$550 billion of belongings beneath administration throughout actual property, infrastructure, renewable energy, non-public fairness and credit score. Brookfield owns and operates long-life belongings and companies, a lot of which kind the spine of the worldwide economic system. Using its world attain, entry to large-scale capital and operational experience, Brookfield affords a variety of different funding merchandise to traders all over the world—together with private and non-private pension plans, endowments and foundations, sovereign wealth funds, monetary establishments, insurance coverage corporations and personal wealth traders.

Brookfield Asset Administration is listed on the New York and Toronto inventory exchanges beneath the symbols BAM and BAM.A, respectively.

American Fairness
American Fairness Funding Life Holding Firm, by its wholly-owned subsidiaries, is a number one issuer of mounted index annuities by impartial brokers, banks and broker-dealers. American Fairness Funding Life Holding Firm, a New York Inventory Alternate listed firm (NYSE: AEL), is headquartered in West Des Moines, Iowa. For extra data, please go to

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Ahead-Trying Statements

This information launch comprises “forward-looking data” inside the that means of Canadian provincial securities legal guidelines and “forward-looking statements” inside the that means of Part 27A of the U.S. Securities Act of 1933, as amended, Part 21E of the U.S. Securities Alternate Act of 1934, as amended, “protected harbor” provisions of the USA Non-public Securities Litigation Reform Act of 1995 and in any relevant Canadian securities rules.In some circumstances, you possibly can establish forward-looking statements and knowledge by phrases corresponding tointends,“expects,” “believes,” “roughly,” “estimate,” “could,” “predict,“plan,” “ought to,” “will,” and “would” or the detrimental model of those phrases or different comparable or related phrases
which might be predictive in natureor point out future occasions, developments or prospects and which don’t relate to historic issues establish forward-looking statements.

Though Brookfield believes that forward-looking statements
and knowledgeon this information launch
are primarily based upon affordable assumptions and expectations, the reader mustn’t place undue reliance on forward-looking statements and knowledge as such statements and knowledge contain recognized and unknown dangers, uncertainties and different components which can trigger the precise outcomes, efficiency or achievements of Brookfield to vary materially from anticipated future outcomes, efficiency or achievement expressed or implied by such forward-looking statements and knowledge.

Elements that would trigger precise outcomes to vary materially from these contemplated or implied by forward-looking statements embrace
the flexibility to acquire regulatory approvals and meet different closing situations;
a delay within the closing of the funding;thebasic political, financial and market situations;and different dangers and components as detailed infrequently in
Brookfield’sAnnual Report on Type 40-F filed with the Securities and Alternate Fee in addition to different paperwork filed byBrookfieldwith the securities regulators in Canada and the USA.

We warning that the foregoing checklist of essential components which will have an effect on future outcomes is just not exhaustive. When counting on our forward-looking statements to makefundingselections with respect to Brookfieldor in any other case, traders and others ought to fastidiously take into account the foregoing components and different uncertainties and potential occasions. Besides as required by legislation,Brookfieldundertakes no obligation to publicly replace or revise any forward-looking statements or data, whether or not written or oral, which may beon account ofnew data, future occasions or in any other case.

This information launch and its contents don’t represent and shouldn’t be construed as a advice to purchase; a proposal to purchase or solicitation of a proposal to purchase; a proposal to promote; recommendation in relation to, any securities of Brookfield or AEL.

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