MassMutual buys American Financial’s annuity business enterprise for $3.5b
MassMutual has built a big wager on the annuities current market with a $3.5 billion offer to acquire Wonderful American Life Coverage Co. from its parent, American Fiscal Team.
© Josh Reynolds for The Boston World
MassMutual CEO Roger Crandall speaks to membership of the Involved Industries of Massachusetts in Waltham in 2019.
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Below the terms of the offer, Excellent American Lifetime and its 600-furthermore workforce will be part of MassMutual as an independent subsidiary and will stay headquartered in Cincinnati immediately after the offer closes, probable in the second quarter of 2021. The company will keep on to be led by president Mark Muething. MassMutual employs about 6,000 men and women, making the Springfield-primarily based insurance provider about 10 moments the measurement of Good American Lifetime.
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Good American Life specializes in fastened and indexed annuities. MassMutual executives see the annuity marketplace as getting extensive likely for growth as much more baby boomers method retirement. The deal also provides Wonderful American Life’s distribution network, notably with banks, that will support MassMutual access an even more substantial buyer foundation.
“This acquisition is an excellent strategic healthy for MassMutual that will broaden our product or service offerings, grow our distribution, and create additional earnings, allowing us to develop a true life span earnings franchise and deliver ongoing benefit to our policyowners and clients,” said Roger Crandall, MassMutual’s main executive, in a statement.
