SPRINGFIELD, Mass.--(BUSINESS WIRE)--Massachusetts Mutual Life Insurance Company (“MassMutual”) announced today the completion of the previously announced acquisition of American Financial Group, Inc.’s (NYSE:AFG) wholly owned subsidiary, Great American Life Insurance Company (“Great American Life”), and other subsidiaries and affiliated entities, for a purchase price of approximately $3.5 billion.
“We are excited to welcome Great American Life to MassMutual and to help build on its outstanding leadership position in the annuity market,” said Roger Crandall, Chairman, President and CEO, MassMutual. “This acquisition immediately broadens our product offerings, further diversifies our distribution capabilities, and generates additional earnings – enabling us to help even more people secure their future and protect the ones they love.”
The acquisition includes Great American Life and its two insurance subsidiaries, Annuity Investors Life Insurance Company and Manhattan National Life Insurance Company, as well as a broker-dealer affiliate, Great American Advisors, Inc., and insurance distributor, AAG Insurance Agency, Inc. With the completion of this acquisition, MassMutual is among the top five individual annuity writers in the U.S.1
Great American Life will operate as an independent subsidiary of MassMutual led by its current president, Mark Muething, who will report to Mike Fanning, head of MassMutual U.S. Its more than 600 employees will continue to support the business and remain headquartered in Cincinnati.
“Today marks a new beginning for Great American Life as we join MassMutual to make an even greater impact serving the millions of Americans who need our help in building financial security,” said Mark Muething, President and Chief Operating Officer of Great American Life. “This transaction strengthens our position as a leading U.S. annuity company, enhances our ability to deliver compelling solutions for our policyholders and distribution partners, and positions us for future growth with a company that’s committed to our success.”
Fanning, who will oversee the Great American Life business added, “Our goal is to ensure a seamless transition for Great American Life’s employees, clients and partners. We look forward to working together with Great American Life to reach more customers in need of lifetime income solutions and deliver ongoing value to our policyowners and customers.”
Debevoise & Plimpton LLP served as legal counsel to MassMutual. Skadden, Arps, Slate, Meagher & Flom LLP and Keating Muething & Klekamp PLL served as legal counsel to AFG.
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. Founded in 1851, the company has been continually guided by one consistent purpose: we help people secure their future and protect the ones they love. With a focus on delivering long-term value, MassMutual offers a wide range of protection, accumulation, wealth management and retirement products and services. For more information, visit massmutual.com.
About American Financial Group, Inc.
American Financial Group (NYSE: AFG) is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
1U.S. Individual Annuities Sales Survey, (2020), LIMRA Secure Retirement Institute®