(Center of Performing Arts, Beijing, home of Anbang Insurance Group. Source: A As Architecture.)
Anbang Insurance Group (Beijing) has entered into a definitive agreement to acquire Fidelity & Guaranty Life (FGL, Des Moines), by which Anbang will acquire FGL for $26.80 per share.
The deal will make Anbang one of the largest insurers by market share in fixed indexed annuities in the U.S. A statement from the companies says that Anbang expects that FGL’s life and fixed annuity platforms will enhance the growth of Anbang’s business while accelerating FGL’s ability to extend its policyholder base.
“After conducting a review of strategic alternatives, we believe this is an excellent transaction that sets FGL on a good path for continued success,” comments Chris Littlefield, president and CEO, FGL. “Our expertise and ongoing commitment to independent agents and the indexed life and indexed annuity insurance markets, coupled with Anbang’s resources, will allow us to continue to grow our business and serve our customers. In addition, with Anbang’s ownership, FGL will join a strong, diversified global company that has a long-term vision and investment horizon for life insurance. We look forward to continuing to provide our distribution partners with innovative solutions designed to protect their clients’ families and retirement savings.”
The deal reflects Anbang’s client-centric philosophy, according to a company statement. “Anbang’s deep presence in the Asian insurance market has benefited from a deeply rooted rational investment decisions, long-term, value-driven and client-centric growth strategy, all founded in thorough analysis,” the unattributed statement says. “The acquisition of FGL—a company with a positive operational track record, skilled management team and employee base, and strong long-term business potential—is consistent with Anbang’s investment strategy, which is focused on globalization.”
By the terms of the agreement, Anbang will acquire all of the outstanding shares of Fidelity & Guaranty Life. Stockholders of FGL will receive $26.80 per share in cash at closing. The transaction represents a 28.9% premium over $20.79 per share, FGL’s unaffected closing stock price prior to the public announcement of the strategic review process on April 6, 2015.