The stock market was largely flat Monday morning, but American Equity Investment Life Holding (NYSE: AEL) was a big exception. As of 11:45 a.m. EDT, shares of the annuity provider and life insurer were down by 19%.
American Equity's plunge was caused by the announcement of a partnership with Brookfield Asset Management (NYSE: BAM) , where Brookfield agreed to reinsure $10 billion of American Equity's liabilities and also agreed to make a large equity investment (a 19.9% stake) at a substantial premium to the company's recent stock price.
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Here's Why American Equity Investment Life Holding Is Plunging on Monday