MassMutual has announced it will acquire Great American Life Insurance Company from American Financial Group for $3.5 billion. The subsidiary being acquired deals almost entirely in fixed and fixed indexed annuity products.
MassMutual is looking to use Great American Life Insurance as another way to expand the distribution of its product offerings, but is not planning on making any major changes. Mark Muething will remain at the head of the division and its 600 employees will still be headquartered in Cincinnati, Ohio.
In a statement, the CEO of American Financial Group Commented “This transaction presents an excellent opportunity for Great American Life and MassMutual to be one of the leading providers of traditional fixed and indexed annuities in major distribution channels and markets. In fact, MassMutual has among the highest insurance financial strength ratings, which we believe will result in enhanced distributor recruitment and policyholder retention.”