MassMutual has created a massive wager on the annuities market place with a $3.5 billion offer to purchase Great American Lifetime Coverage Co. from its parent, American Money Group.
Below the terms of the deal, Good American Lifestyle and its 600-additionally staff members will be part of MassMutual as an impartial subsidiary and will stay headquartered in Cincinnati immediately after the offer closes, possible in the second quarter of 2021. The company will keep on to be led by president Mark Muething. MassMutual employs about 6,000 people today, generating the Springfield-based mostly insurer around 10 situations the sizing of Great American Lifetime.
Excellent American Lifetime specializes in fixed and indexed annuities. MassMutual executives watch the annuity market as having broad prospective for expansion as much more baby boomers solution retirement. The deal also brings Great American Life’s distribution community, specially with financial institutions, that will assist MassMutual reach an even more substantial shopper foundation.
“This acquisition is an fantastic strategic in shape for MassMutual that will broaden our products offerings, increase our distribution, and produce supplemental earnings, permitting us to construct a real lifetime revenue franchise and supply ongoing value to our policyowners and prospects,” mentioned Roger Crandall, MassMutual’s main government, in a statement.