Analysts: Private Equity Eyes American Equity
May 31, 2018 by Cyril Tuohy
On the surface American Equity isn’t a prime candidate for a sale, so why has the company emerged as a rumored takeover target?
It’s a question that analysts are puzzling through.
American Equity, based in West Des Moines, “doesn’t strike us as a company looking to sell,” but the fixed annuity space has attracted interest from private equity players in particular, according to KBW analyst Ryan Krueger, in a research note.
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“Athene has been public in their desire for additional opportunities for acquisition,” said annuity market expert Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink Inc., publisher of Wink’s Sales & Market Report.
Notwithstanding American Equity’s Eagle Life subsidiary, which distributes annuities through banks and broker-dealers, Athene and American Equity “don’t have a ton of synergies,” as products and distribution are similar, Moore said.