MassMutual has made a large wager on the annuities current market with a $3.5 billion offer to obtain Excellent American Everyday living Insurance policies Co. from its mum or dad, American Monetary Group.
Under the conditions of the offer, Good American Lifetime and its 600-plus workers will join MassMutual as an impartial subsidiary and will remain headquartered in Cincinnati following the deal closes, probable in the next quarter of 2021. The business will continue to be led by president Mark Muething. MassMutual employs about 6,000 men and women, generating the Springfield-based insurance provider roughly 10 occasions the dimensions of Great American Lifetime.
Excellent American Daily life specializes in fastened and indexed annuities. MassMutual executives view the annuity industry as obtaining broad prospective for progress as far more child boomers approach retirement. The offer also brings Good American Life’s distribution community, specifically with banks, that will aid MassMutual arrive at an even even larger purchaser foundation.
“This acquisition is an excellent strategic in shape for MassMutual that will broaden our product or service offerings, develop our distribution, and crank out extra earnings, permitting us to develop a true lifetime profits franchise and supply ongoing value to our policyowners and consumers,” said Roger Crandall, MassMutual’s chief govt, in a statement.
Jon Chesto can be reached at firstname.lastname@example.org. Abide by him on Twitter @jonchesto.