American Equity acknowledges rumors that it could be takeover target
May 29, 2018 by Donnelle Eller
American Equity Investment, a West Des Moines annuity and insurance company that employs about 540 people, has acknowledged market rumors that it could be in talks to be sold.
American Equity Investment Life Holding issued a statement Wednesday saying it “notes recent market rumors and confirms that it is in preliminary discussions regarding a potential transaction.”
“No assurance can be given that such discussions will continue, that any definitive agreement will be reached with respect to a transaction or that a transaction will be consummated,” the company said.
American Equity said it would not comment further “unless and until a definitive agreement has been reached.”
Citing unnamed sources, Reuters reported Tuesday that American Equity, a $3.1 billion publicly traded company, was exploring a possible sale.
“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,” Reuters’ David French reported.
Athene Annuity and Life Co., an Athene Holding subsidiary, is based in West Des Moines. Athene Holding’s market cap is $9.05 billion.
American Equity reported first-quarter net income of $141 million earlier this month compared with a net income of $53.9 million for the same quarter a year earlier.
American Equity’s shares closed $2.65, or 8.2 percent, higher to $34.93 each Wednesday.
American Equity sells fixed-index and fixed-rate annuities, which are investment instruments.
The company was founded by well-known Des Moines entrepreneur David Noble, who died last year at 85.
Noble led the company as its board chairman, CEO, president and treasurer simultaneously from 1995 through 2008. He served as the company’s board chairman until his death.
