MassMutual has produced a significant wager on the annuities sector with a $3.5 billion offer to receive Wonderful American Daily life Insurance coverage Co. from its mum or dad, American Economical Team.
Underneath the conditions of the offer, Wonderful American Everyday living and its 600-additionally workers will be a part of MassMutual as an impartial subsidiary and will continue being headquartered in Cincinnati immediately after the offer closes, possible in the 2nd quarter of 2021. The business enterprise will carry on to be led by president Mark Muething. MassMutual employs about 6,000 people, generating the Springfield-centered insurance provider about 10 occasions the size of Fantastic American Everyday living.
Wonderful American Lifestyle specializes in preset and indexed annuities. MassMutual executives look at the annuity marketplace as getting extensive possible for advancement as much more newborn boomers tactic retirement. The offer also delivers Fantastic American Life’s distribution network, particularly with banking companies, that will aid MassMutual achieve an even larger customer foundation.
“This acquisition is an exceptional strategic fit for MassMutual that will broaden our product choices, increase our distribution, and deliver added earnings, allowing us to construct a accurate life time revenue franchise and provide ongoing benefit to our policyowners and consumers,” reported Roger Crandall, MassMutual’s main government, in a assertion.