U.S. insurer American Equity explores sale -sources

Greenthesis SpA

22/05/2018 21:36

(Adds earnings reference, share reaction)
    By David French
    May 22 (Reuters) - American Equity Investment Life Holding
Co  AEL.N , a U.S. provider of annuities and life insurance
products, is exploring a sale after it attracted takeover
interest, people familiar with the matter said on Tuesday. 
    The West Des Moines, Iowa-based company, which sells fixed
index and fixed rate annuity products, is working with an
investment bank as it discusses a potential sale with interested
suitors, the sources said.
    Reinsurance firms, such as Athene Holding Ltd  ATH.N , and 
annuities and life insurance providers, such as FGL Holdings
 FG.N , could be among those expressing an interest in an
acquisition of American Equity, the sources added.
    The sources cautioned that no deal is certain and asked not
to be identified because the matter is confidential. American
Equity, Athene and FGL Holdings did not immediately respond to
requests for comment.
    American Equity shares ended up 11.2 percent at $32.28 on
the news on Tuesday, giving the company a market capitalization
of $2.9 billion.
    Earlier this month, American Equity reported 2018
first-quarter net income of $141 million compared with net
income of $53.9 million for the first quarter of 2017.
    The sector has seen plenty of dealmaking. Last year, CF
Corp, a blank check company backed by Chinh Chu, a veteran
dealmaker who made his name at buyout firm Blackstone Group LP
 BX.N , and William Foley, the non-executive chairman of the
board of Fidelity National Financial Inc  FNF.N , acquired FGL
Holdings for $1.84 billion.  urn:newsml:reuters.com:*:nL4N1IQ3JX

 (Reporting by David French in New York; editing by Nick
Zieminski and Jonathan Oatis)
 ((davidj.french@thomsonreuters.com; +1 646 223 5211; Reuters
Messaging: davidj.french.thomsonreuters.com@reuters.net))