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American Equity closes on Brookfield Asset Management reinsurance deal

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American Equity Investment Life Holding Co. announced that it has closed its previously announced reinsurance transaction with North End Re SPC, a wholly owned subsidiary of Brookfield Asset Management Reinsurance Partners Ltd. Under the terms of the agreement, effective July 1, American Equity Investment Life Insurance Co., one of American Equity’s primary insurance subsidiaries, will cede up to $10 billion of liabilities including both in-force and new business flow to North End Re. Cash to be transferred upon closing of the in-force reinsurance transaction is $3.8 billion. The transaction is expected to release more than $200 million in capital from the transfer of in-force liabilities, which the West Des Moines-based company will use to fuel future growth in new fixed indexed annuity sales. Brookfield said in June that it has an aggregate 9.5% equity stake in American Equity, and has an agreement to purchase additional shares of American Equity for a total equity interest of up to 19.9%.