Brookfield Reinsurance Ramps Up Growth Trajectory with American National Insurance Acquisition

In 2022, Brookfield Reinsurance acquired American National Insurance in a $5.1 billion all-cash deal. Over the past two years, this acquisition has catalyzed rapid growth for Brookfield Reinsurance, with assets under management set to eclipse $100 billion in 2024.

Focused initially on reinsurance when founded in 2020, Brookfield Reinsurance has evolved into a diverse insurance holdings company. Key to this expansion was the strategic purchase of American National Insurance, a venerable multiline insurer operating since 1905. Adding American National’s extensive footprint and variety of offerings significantly broadened Brookfield Reinsurance’s portfolio beyond reinsurance into areas like life insurance, annuities, pensions, and property and casualty.

Integrating American National also expanded Brookfield Reinsurance’s operational scope across all 50 U.S. states. American National’s stable growth history and disciplined underwriting approach made it an attractive partner, with Brookfield Reinsurance citing an eagerness to build on American National’s strong franchise. This has paid dividends, as AmForbes recently honored American Nationals, one of America’s top insurers, for service, satisfaction, and value.

On the heels of the American National deal, Brookfield Reinsurance continued enlarging its holdings in the insurance space. A $1.1 billion acquisition of Argo Group closed in late 2023, further augmenting Brookfield Reinsurance’s property and casualty capabilities. Adding Argo’s specialty platform and network establishes another pillar in Brookfield Reinsurance’s U.S. P&C business. Brookfield again emphasized a collaborative growth-focused approach, wanting to support Argo’s core operations and franchise.

The impending $4.3 billion purchase of American Equity Investment Life Holding Company will close in 2024. Focusing on annuities and retirement solutions, American Equity strengthens a key area complementary to Brookfield Reinsurance’s lineup. Citing American Equity’s existing leadership and innovative market positioning, Brookfield anticipates being able to accelerate its expansion in this sphere through joint distribution efforts.

Altogether, Brookfield Reinsurance will have funneled over $10 billion into acquisitions by early 2024 to catalyze its rapid ascent, managing more than $100 billion in total assets. Integrating these purchases aims to optimize operations across business lines, manage risk, boost investment returns,n and ultimately deliver value for policyholders and shareholders. With assets scaling towards $100 billion, the company is concentrated on driving further growth in insurance while meeting stakeholder needs.

The acquisition approach traces back to Brookfield Reinsurance’s strategy of acquiring and efficiently operating insurance firms, facilitating access to Brookfield Corporation’s investment pipeline. Fostering organic expansion of solid companies like American National Insurance lays the foundation for long-term success and evolution in the insurance industry.

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