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AM Best Comments on Credit Ratings of American Equity Investment Life Insurance Company and Its Subsidiaries Following Acquisition Announcement

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OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of American Equity Investment Life Insurance Company and its subsidiaries, American Equity Investment Life Insurance Company of New York (Lake Success, NY) and Eagle Life Insurance Company, remain unchanged following the announcement that a definitive agreement has been reached whereby Brookfield Reinsurance Ltd. will acquire all of the outstanding shares of common stock of the parent company, American Equity Investment Life Holding Company (AEL) [NYSE: AEL], that it does not already own, in a cash and stock transaction of approximately $4.3 billion. The outlook of these Credit Ratings (ratings) will remain stable.

The transaction is expected to have minimal impact on the current strategic plan, with continued investment in infrastructure, while preserving liquidity. Current product development also will continue within AEL operating companies as planned.

The merger is expected to close in the first half of 2024, subject to regulatory approvals. Under the terms of the merger agreement, payment of dividends on AEL common stock will be suspended through the closing of the transaction. Following the closing, Brookfield Reinsurance Ltd. expects to maintain AEL’s headquarters in Des Moines, Iowa and intends to continue the focus on alternative asset strategies. AM Best will continue to closely monitor the transaction and the impact to the operating insurance entities under AEL.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Igor Bass

Senior Financial Analyst

+1 908 882 1646

igor.bass@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Jacqalene Lentz

Director

+1 908 882 2011

jacqalene.lentz@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

American Equity Investment Life Holding Company

NYSE:AEL

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About AEL

fixed index annuities * retirement planning * customer service an american-owned and operated company headquartered in the heart of the midwest, american equity investment life insurance company® is a leader in the fixed indexed annuities marketplace. american equity’s growth and success is attributed to our dedication to excellent customer service and emphasis on building customer relationships. “the one who works for you!®” serves as the foundation for the way american equity does business and values its more than 500 employees. guided by our principles of excellence, we do more than sell retirement annuity products -- we are dedicated to fostering opportunity and innovation to meet the ever-changing needs and goals of retirement. we are about principles. we are the one who works for you! social media terms and conditions of use: https://www.american-equity.com/social-media-terms