The American Fairness Funding Life Holding Firm board has rejected an unsolicited acquisition supply from Prosperity Group Holdings — a life insurer affiliated with Elliott Funding Administration — for $45 per share in money, or a complete of $3.7 billion.
David Mulcahy, American Fairness’s chair, referred to as the Prosperity supply “opportunistic” and mentioned it “considerably undervalues the corporate.”
Prosperity mentioned that American Fairness rejected one supply in lower than three enterprise days, and a second supply in lower than 24 hours. I added that it’d enhance its supply if it could get extra details about the corporate.
What It Means
Funding corporations are nonetheless attempting to accumulate and realign life insurers. That might result in extra modifications within the names of the businesses standing behind your purchasers’ life insurance coverage insurance policies and annuity contracts.
American Fairness is a West Des Moines-based life insurer that’s greatest recognized for promoting non-variable listed annuities.
It has $60 billion in belongings, relationships with 24,000 brokers, and about 500,000 contracts in drive.
Elliott Administration, Prosperity’s principal shareholder, is the corporate that persuaded Principal Monetary to drop its fastened annuity and retail life insurance coverage operations in the US.