NEW YORK--(BUSINESS WIRE)--Global Atlantic Financial Group announced it is reinsuring through a subsidiary approximately $9 billion of fixed annuities and other spread-based reserves following The Hartford’s sale of Talcott Resolution. The sale is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2018.
With this deal, Global Atlantic further establishes itself as a leader in block transactions for the U.S. life and annuity marketplace, having reinsured or acquired over $45 billion of assets since its founding. Global Atlantic is a top reinsurer of life and annuity blocks, based on public statutory filings.
Value maximization and speed of execution
The investor group acquiring Talcott Resolution was able to leverage Global Atlantic’s reinsurance experience and speed of execution. The reinsurance transaction provides significant capital and economic accretion incorporated in the purchase price to The Hartford.
“Global Atlantic utilized its risk, investment and transaction expertise to help both the buyer and seller meet their stated objectives,” said Manu Sareen, who heads Global Atlantic’s Reinsurance business. “This transaction further exemplifies Global Atlantic’s ability to provide value-maximizing, customized solutions for our reinsurance clients.”
“This reinsurance transaction enhances the value and risk profile of Talcott Resolution,” said The Hartford’s Chief Financial Officer Beth Bombara. “Global Atlantic’s insurance experience and customized approach played a significant role in the overall transaction.”
The blocks Global Atlantic is reinsuring are fixed annuities that were distributed primarily through banks and broker-dealers, as well as other spread-based reserves that are consistent with its investment and risk management strengths, as well as its reinsurance and retail business mix.
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.
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, alongside a strong financial foundation of over $55 billion in total assets.
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.