AEL - American Equity Investment announces long-term partnership with 26North

• American Equity Investment Life ( NYSE: AEL ) on Tuesday announced a long-term partnership with 26North Partners, a multi-asset platform in which it will acquire a stake.
• Anant Bhalla, CEO and president of American Equity ( AEL ), will join 26North's board.
• Bermuda-based reinsurer AeBe ISA, which is affiliated with 26North, reinsured ~$4.3B of reserves of American Equity ( AEL ) fixed indexed annuity policies from 2008 and 2010.
• American Equity ( AEL ) estimates this will generate an initial capital release of over $250M and generate a positive ceding commission, which will increase its revenue-generating reinsured liabilities.
• The reinsurance deal was effective as of Oct. 1.

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