Global Atlantic announces $10B group annuity reinsurance deal with Equitable
Global Atlantic Financial Group (“Global Atlantic”), a leading financial services company, today announced it has signed an agreement with Equitable Financial Life Insurance Company (“Equitable”) to reinsure a portion of its group retirement annuities. The business Global Atlantic will reinsure currently has $10 billion in general account and separate account value.
Under the terms of the agreement, Equitable Financial Life Insurance Company, a subsidiary of Equitable Holdings, Inc. (NYSE: EQH), will transfer approximately $3 billion in general account assets under management to Global Atlantic subsidiary First Allmerica Financial Life Insurance Company. Equitable will retain servicing and administration of the policies and separate account funds, which will be ceded on a modified coinsurance basis. The deal is expected to close during the fourth quarter, subject to satisfaction or waiver of customary closing conditions, including receipt of regulatory approvals.
“Equitable’s financial, risk and counterparty objectives aligned well with our ability to manage both spread and fee-based liabilities for an attractive, comprehensive solution,” said Manu Sareen, Co-President and Head of Institutional Markets for Global Atlantic. “We are excited to put our execution experience, strong balance sheet and risk management capabilities to work with another premier blue-chip provider of retirement products, extending our track record of providing best in class reinsurance solutions.”
This transaction also marks Global Atlantic’s second block reinsurance transaction in 2022, having reinsured a diverse block of annuities totaling $4 billion in March. With this deal, Global Atlantic further advances its position as a leading reinsurance franchise in the annuity and life insurance marketplace, having reinsured approximately $80 billion of assets since its inception in 2004.
Wells Fargo Securities, LLC is serving as financial advisor and Debevoise & Plimpton LLP is acting as legal counsel to Global Atlantic in connection with this transaction.
About Global Atlantic
Global Atlantic Financial Group is a leader in the U.S. life insurance and annuity industry, serving the needs of individuals and institutions. With differentiated investment and risk management capabilities, deep client relationships, and a strong financial foundation, the company has established a track record of delivering proven, value-added solutions and long-term growth. Global Atlantic is a majority-owned subsidiary of KKR, a leading global investment firm that offers alternative asset management across multiple strategies and capital markets solutions. KKR’s parent company is KKR & Co. Inc. (NYSE: KKR).
Certain information contained in this press release constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “target,” “intend,” “continue” or “believe,” other variations thereon or comparable terminology. The forward-looking statements speak only as of the date hereof and are based on Global Atlantic’s current beliefs, assumptions and expectations. Due to various risks, uncertainties and contingencies, including but not limited to obtaining required regulatory approvals, closing on signed transactions and whether the anticipated benefits of a transaction can be achieved within expected timeframes, actual events or results or performance may differ materially from what is reflected or contemplated in such forward-looking statements. Global Atlantic undertakes no obligation to update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. Past performance is not a guarantee of future results.
Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries.
Reinsurance transactions are entered into by Global Atlantic Assurance Limited, Global Atlantic Re Limited, Commonwealth Annuity and Life Insurance Company, First Allmerica Financial Life Insurance Company or one of their affiliates. Reinsurance is placed, where required by applicable law, by Global Atlantic Risk Advisors, L.P., a licensed reinsurance intermediary and subsidiary of The Global Atlantic Financial Group LLC.