American Fiscal Team, Inc. Announces Arrangement to Sell its Annuity Business enterprise to MassMutual for $3.5 Billion

CINCINNATI–(Company WIRE)–Jan 27, 2021–

American Money Group, Inc. (NYSE: AFG) declared today that it has entered into a definitive agreement to promote its Annuity business to Massachusetts Mutual Lifetime Insurance policy Company (MassMutual) for $3.5 billion in hard cash, subject to remaining closing changes to the extent that GAAP shareholders’ equity excluding gathered other thorough money of the entities marketed may differ from $2.8 billion.

Beneath the terms of the settlement, which is expected to close in the 2nd quarter of 2021, MassMutual will acquire Great American Life Insurance policy Company (GALIC) and its two insurance policy subsidiaries, Annuity Investors Everyday living Coverage Organization and Manhattan Countrywide Lifetime Insurance policies Business. At December 31, 2020, GALIC and its subsidiaries experienced approximately $40 billion of regular fastened and indexed annuity reserves. AFG expects to realize an just after-tax attain on the sale of $620 million to $690 million ($7.10 to $7.90 per AFG share) upon closing. Prior to completion of the transaction, AFG will purchase around $500 million in authentic estate-relevant partnerships and specifically owned genuine estate from GALIC.

S. Craig Lindner, AFG’s Co-Chief Government Officer, commented, “This transaction offers an great prospect for GALIC and MassMutual to be a single of the main providers of conventional mounted and indexed annuities in key distribution channels and markets. In simple fact, MassMutual has among the optimum coverage economic strength rankings, which we imagine will end result in enhanced distributor recruitment and policyholder retention. MassMutual’s dedication to set up a subsidiary in Cincinnati makes sure that the agreement will have no affect on GALIC’s associations with and commitments to its annuity policyholders and distribution associates. Importantly, we are very happy that this transaction will provide persuasive profession possibilities for our annuity associates, and deliver the operations of a very well-highly regarded insurance provider to the Larger Cincinnati business enterprise group.”

Mr. Lindner ongoing, “As Co-CEOs, Carl and I perspective money management as a person of our most important priorities. AFG’s funds and liquidity will be significantly improved as a consequence of the transaction. With a potent equilibrium sheet and substantial excessive capital, we will go on to evaluate chances for deploying AFG’s excess money, such as the likely for healthful, successful natural and organic expansion, expansion of our Specialty House & Casualty specialized niche businesses by means of acquisitions and start off-ups that meet up with our focus on return thresholds, as very well as share repurchases and exclusive dividends.”

Roger Crandall, Chairman, President and CEO, MassMutual commented: “With MassMutual’s enduring financial energy, broad investment capabilities and close-to-stop digital experience, we will establish on the remarkable leadership posture that the gifted and committed Terrific American Everyday living workforce has designed in excess of generations, enabling us to help even far more men and women safe their potential and defend the types they enjoy.”

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

About American Fiscal Group, Inc.

American Monetary Team is an insurance plan keeping business, dependent in Cincinnati, Ohio. By way of the operations of Terrific American Insurance policy Group, AFG is engaged generally in property and casualty insurance, concentrating on specialised commercial solutions for corporations, and in the sale of classic mounted and indexed annuities in the retail, monetary establishments, broker-vendor, and registered financial commitment advisor markets. Wonderful American Insurance policies Group’s roots go back again to 1872 with the founding of its flagship organization, Terrific American Insurance plan Firm.

About MassMutual

MassMutual is a primary mutual lifestyle insurance policy firm that is run for the reward of its members and participating policyowners. Founded in 1851, the enterprise has been regularly guided by one consistent reason: we assistance folks protected their upcoming and defend the kinds they really like. With a concentration on offering lengthy-time period price, MassMutual provides a huge vary of safety, accumulation, prosperity administration and retirement products and solutions.

Forward Seeking Statements

This press release consists of specified statements that may be deemed to be “forward-hunting statements” in the that means of Part 27A of the Securities Act of 1933 and Segment 21E of the Securities Trade Act of 1934. All statements in this push release not working with historical benefits are ahead-hunting and are primarily based on estimates, assumptions and projections. Examples of these forward-on the lookout statements incorporate statements relating to: the Company’s expectations relating to market and other ailments and their outcome on future premiums, revenues, earnings, expenditure functions and the amount of money and timing of share repurchases recoverability of asset values expected losses and the adequacy of reserves for asbestos, environmental air pollution and mass tort claims fee alterations and enhanced loss working experience.

Real success and/or fiscal issue could differ materially from those contained in or implied by such ahead-wanting statements for a range of motives such as, but not limited to: that AFG may possibly be not able to entire the proposed transaction due to the fact, amid other explanations, situations 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 comprehend the anticipated gains from the proposed transaction, adjustments in money, political and economic disorders, including modifications in interest and inflation charges, currency fluctuations and extended financial recessions or expansions in the U.S. and/or abroad general performance of securities marketplaces, like the price tag of equity index alternatives new legislation or declines in credit rating excellent or credit scores that could have a content effects on the valuation of securities in AFG’s expenditure portfolio the availability of funds variations in coverage law or regulation, such as modifications to money needs the results of the COVID-19 outbreak, including the results on the global and national financial system and credit rating markets, legislative or regulatory developments affecting the coverage business, quarantines or other vacation or health-linked limits modifications in the legal setting impacting AFG or its shoppers tax regulation and accounting alterations degrees of organic catastrophes and intense weather conditions, terrorist routines (like any nuclear, biological, chemical or radiological functions), incidents of war or losses resulting from pandemics, civil unrest and other major losses disruption caused by cyber-assaults or other technological innovation breaches or failures by AFG or its small business associates and company vendors, which could negatively effect AFG’s small business and/or expose AFG to litigation advancement of insurance policies decline reserves and institution of other reserves, significantly with regard to amounts involved with asbestos and environmental statements availability of reinsurance and capability of reinsurers to pay back their obligations traits in persistency and mortality competitive pressures the ability to attain ample costs and coverage conditions alterations in AFG’s credit rating ratings or the economical toughness ratings assigned by major ratings companies to AFG’s working subsidiaries the effect of the circumstances in the global fiscal markets and the world wide financial system relating to AFG’s intercontinental operations and other elements recognized in AFG’s filings with the Securities and Trade Fee.

The ahead-looking statements herein are created only as of the date of this push launch. The Corporation assumes no obligation to publicly update any forward-wanting statements.

Look at source variation on businesswire.com:https://www.businesswire.com/information/home/20210127005961/en/

Get in touch with: Diane P. Weidner, IRC

Vice President – Trader & Media Relations

(513) 369-5713Web sites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

Key word: MASSACHUSETTS OHIO UNITED STATES NORTH The united states

Industry Search phrase: Specialist Providers Insurance plan FINANCE

Supply: American Economical Group, Inc.

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

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