Financial services firm Equitable Holdings has successfully closed its previously-announced $12 billion transaction with Venerable to reinsure legacy variable annuity policies sold between 2006 and 2008.
AllianceBernstein will serve as the preferred investment manager for the transferred general account assets.
As part of the deal, Equitable has also announced the acquisition of its in-force variable annuity reinsurance entity, Corporate Solutions Life Re, by Venerable.
“We are pleased to have successfully closed Equitable’s landmark legacy variable annuity reinsurance transaction,” said Robin Raju, Chief Financial Officer, Equitable.
“Thanks to our fair value economic approach to managing the business, and the diligent efforts of our teams, we achieved a timely closing.
“Today’s announcement marks a pivotal milestone for Equitable as we further de-risk our balance sheet and enhance our focus on value-accretive and capital-resilient businesses to drive long-term shareholder value.”
In accordance with the terms of the agreement, Equitable Holdings has acquired a 9.09% equity stake in Venerable’s parent holding company, VA Capital Company LLC.
In connection with such investment, the Company will have the right to designate a member of the Board of Managers of VA Capital Company LLC.
