China's Anbang Insurance Group Co. announced Monday that it has entered into a definitive agreement to acquire U.S. life insurance provider Fidelity & Guaranty Life Insurance Company (NYSE: FGL) for 1.57 billion U.S. dollars.
Anbang said it will acquire FGL for 26.80 dollars per share. Subject to regulatory approvals and satisfaction of other customary closing conditions, the transaction is expected to close in the second quarter of 2016.
Fidelity & Guaranty Life, headquartered in Des Moines, Iowa, is an insurance holding company, helps middle-income Americans prepare for retirement.
The transaction will make Anbang one of the largest insurers by market share in fixed annuity products in the United States. FGL's solid life and annuity platforms will enhance the growth of business on the part of Anbang. Meanwhile, Anbang will also help FGL to explore market and enlarge its client base.
Anbang Insurance Group Co., Ltd. is a leading comprehensive insurance company based in Beijing, China with a global network of over 30 million clients and more than 30,000 employees.
Last October, Anbang has made headlines with the acquisition of Waldorf Astoria, the landmark hotel on Park Avenue in the Big Apple. Under the agreement, Anbang purchased the iconic luxury hotel for 1.95 billion dollars from Hilton Worldwide Holdings.
In March 2015, Anbang Insurance Group Co. agreed to buy 21 floors of an office building on the famed Fifth Avenue in Manhattan, New York City.
