An insurer backed by Elliott Investment Management has dropped efforts to acquire a well-known annuity issuer.
The company, Prosperity Group Holdings, says it has withdrawn a $45-per-share offer for American Equity Investment Life Holding Company because of American Equity's lack of interest.
"Given American Equity's refusal to engage and our desire to proceed only on a constructive basis, Prosperity has no interest in continuing to pursue our proposed transaction at this time," the company said in an offer-withdrawal announcement.
What It Means
Some of the slowdown in life and annuity issuer dealmaking could be the result of rising interest rates and strong non-variable annuity sales giving the issuers the confidence to stay independent.
That could help stabilize the list of companies backing your clients' annuities.
The Players
American Equity is a West Des Moines, Iowa-based life insurer that has focused on selling non-variable annuities.
It reported $1.2 billion in net income for 2022 on $1.4 billion in revenue and $74 billion in assets, compared with $430 million in net income on $3.7 billion in revenue and $78 billion in assets for 2021.
