China-based Anbang Insurance Group has signed an agreement to acquire US-based Fidelity & Guaranty Life (FGL), for around $1.57bn.
As part of the deal, Anbang will pay $26.80 per share to acquire FGL, which provides annuities and life insurance products in the US.
Established in 1959, FGL has insurance sales licenses in all 50 states of the US. It offers professional and advanced life insurance and annuity products in the country.
FGL president and CEO Chris Littlefield said: "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."
According to Anbang Insurance, the acquisition is expected to help the group better serve the financial needs of Chinese clients accessing global markets, while also serving the needs of global clients entering the Chinese market.
Subject to regulatory approvals and satisfaction of other customary closing conditions, the deal is expected to complete in the second quarter of 2016.
In February this year, Anbang Insurance reportedly agreed to acquire a majority stake in South Korean life insurer Tong Yang Life Insurance, for around $1bn.
With around 30 million customers, Anbang provides banking, life insurance, property and casualty insurance, health insurance, pensions, securities, financial leasing and asset management services in Belgium, Netherlands and South Korea, in addition to China.
Image: Fidelity & Guaranty Life offers life insurance and annuity products in the US. Photo: courtesy of David Castillo Dominici/ FreeDigitalPhotos.net.