RTTNews | Jan 28, 2021 10:37AM EST

10:36 Thursday, January 28, 2021 (RTTNews.com) - Shares of American Financial Group, Inc. (AFG) are rising more than 15% following its decision to sell the company's Annuity business to Massachusetts Mutual Life Insurance Company for $3.5 billion in cash.

As per the deal, which is expected to close in the second quarter of 2021, Massachusetts Mutual Life Insurance Company will acquire Great American Life Insurance Company (GALIC) along with its two insurance subsidiaries, Annuity Investors Life Insurance Company and Manhattan National Life Insurance Company.

Upon closing, AFG expects an after-tax gain on the sale of $620 million to $690 million ($7.10 to $7.90 per AFG share). As of December 31, 2020, GALIC and its subsidiaries had approximately $40 billion of traditional fixed and indexed annuity reserves.

Before closing the deal, AFG will acquire approximately $500 million in real estate-related partnerships and directly owned real estate from GALIC.

AFG, currently at $91.97, has traded in the range of $44.01- $115.03 in the last one year.

Read the original article on RTTNews ( https://www.rttnews.com/3164550/stock-alert-american-financial-group-adds-16-after-deciding-to-sell-annuity-business.aspx)

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