Corebridge inks $2.8B variable annuity transaction with Venerable

Corebridge Financial has a deal with CS Life Re, a subsidiary of Venerable Holdings, to reinsure all the variable annuities of its Individual Retirement business, with account value totaling $51 billion.

The transaction is valued at $2.8 billion, consisting of both ceding commission and capital release, and will generate approximately $2.1 billion of net distributable proceeds after-tax for Corebridge, the insurer announced in a news release.

“This is a transformative transaction that repositions the company by exiting Individual Retirement variable annuities," said Kevin Hogan, CEO of Corebridge. "This transaction delivers significant value for Corebridge and its shareholders. We are reaffirming our financial targets while reducing risk and maintaining our diversified business model."

The Corebridge Board of Directors approved a $2 billion increase to the insurer's share repurchase authorization in connection with the transaction. The remaining funds will be used to support "organic growth," the release said.

Venerable will reinsure the variable annuity business from American General Life Insurance Co. and The US Life Insurance Company in the City of New York, both Corebridge companies. At the close of the transaction, Venerable will add variable annuity new business flow reinsurance from AGL.

SunAmerica in the deal

Additionally, Venerable will acquire Corebridge’s investment adviser, SunAmerica Asset Management, which will be integrated into Venerable Investment Advisers. This acquisition will also facilitate the launch of Venerable Variable Insurance Trust and the introduction of new mutual funds underlying Venerable Insurance and Annuity Company’s variable annuity products, which commenced operations in September 2024.

At the close of the acquisition, the SunAmerica team will join Venerable, augmenting the company's "ability to service separate accounts at scale," Venerable said in a news release.

The deal "affirms Venerable as the partner of choice in the variable annuity risk transfer space and advances aspirations to expand our growth strategy to include variable annuity flow reinsurance,” said David Marcinek, chairman and CEO of Venerable. “The efficient and effective standup of Venerable Advisers additionally allowed us to offer Corebridge solutions that others in the industry could not, including expertise in managing separate account assets."

The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits issued after 2009 by AGL, a Texas-domiciled entity, and USL, a New York-domiciled entity. An additional block of policies with death benefits and investment-only variable annuities is also included. Corebridge will retain administration of the blocks as part of the agreement.

Venerable’s general account assets are expected to increase from $18 billion to $22 billion with reinsured business growing nearly 94% to over $95 billion in separate account value. In line with Venerable Advisers growth strategy, the acquisition of SunAmerica will more than triple assets under management to approximately $52 billion, the release said.

The AGL reinsurance transaction is expected to close in the third quarter of 2025 and the USL reinsurance transaction and SunAmerica acquisition are expected to close in the fourth quarter of 2025, the release said.

This report compiled by InsuranceNewsNet staff.