Global Atlantic Closes $9 Billion Reinsurance Transaction

Business Wire

NEW YORK--(BUSINESS WIRE)-- Global Atlantic Financial Group Limited announced the successful closing of its $9 billion reinsurance transaction through a subsidiary, executed in conjunction with The Hartford’s sale of Talcott Resolution to an investor group.

With this closing, Global Atlantic further solidifies its reputation as a leader in block reinsurance transactions for the U.S. life and annuity marketplace, having reinsured or acquired over $50 billion¹ of assets since its founding.

Global Atlantic, through a subsidiary, also participated in the investor group, purchasing approximately 9% of the entity that closed its acquisition of Talcott Resolution on May 31, 2018.

Value creation and speed of execution

The investor group leveraged Global Atlantic’s deep reinsurance experience and speed of execution in connection with the purchase. The reinsurance transaction provided significant capital and economic accretion incorporated in the purchase price paid to The Hartford.

“Global Atlantic’s involvement was important for the sale and showcased our ability to develop custom reinsurance solutions for our clients,” said Manu Sareen, Global Atlantic’s Head of Reinsurance. “We believe the recent higher interest rate environment has been more conducive for transactions involving similar spread-based reserves.”

Global Atlantic reinsured from Talcott Resolution $9 billion of fixed deferred annuities as well as other spread-based reserves.

About Global Atlantic Financial Group

Global Atlantic Financial Group, through its subsidiaries, offers a broad range of retirement, life and reinsurance products designed to help our customers address financial challenges with confidence. A variety of options help Americans customize a strategy to fulfill their protection, accumulation, income, wealth transfer and end-of-life needs. In addition, Global Atlantic offers custom solutions and responsive service for the capital, risk and legacy-business management of life and annuity insurance companies.

Global Atlantic was founded at Goldman Sachs in 2004 and separated as an independent company in 2013. Its success is driven by a unique heritage that combines deep product and distribution knowledge with insightful investment and risk management capabilities, alongside a strong financial foundation of over $60 billion in assets as of March 31, 2018.

Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, Forethought Life Insurance Company and Global Atlantic Re Limited. Each subsidiary is responsible for its own financial and contractual obligations.

¹ With this closing. Includes $25.4 billion of reinsurance transactions and $26.6 billion of strategic acquisitions.