Allianz Life has completed its previously announced reinsurance agreement with affiliates of Sixth Street, including Talcott Resolution Life Insurance Company, and Resolution Life, for a $35-billion fixed index annuity portfolio.
The transaction which was announced last month, unlocks $4.1 billion in value and frees up regulatory capital for Allianz.
This deal is the largest so far for Allianz in terms of size of life back books, and is line with the group’s strategy to enter partnerships with “strong reinsurance and risk management companies to monetise the value of in-force business and enhance the protection afforded to customers.”
Allianz Life continues to manage the administration of the policies in the portfolio and will remain responsible for fulfilling its obligations to policyholders.
The company noted that there will be no changes to policy servicing, call centre management, claims payments, statement generation and delivery, distribution partner experience, and digital self-service.
With Sixth Street being a global investment firm with more than $55 billion in assets under management and committed capital, the transaction demonstrates the ability of its insurance platform to create and execute highly flexible capital solutions for leading insurers at scale.
PIMCO and Allianz Global Investors remain the primary asset managers of the reinsured business.