Life and annuity re/insurance firm Global Atlantic Financial Group has successfully closed its $9 billion reinsurance transaction, having provided financial backing for Talcott Resolution’s recent sale to an investor group.
The firm had reinsured from Talcott Resolution $9 billion of fixed deferred annuities as well as other spread-based reserves.
This deal’s closing means Global Atlantic will have reinsured or acquired over $50 billion of assets since its founding in 2004, further cementing its presence as a leader in block reinsurance transactions for the U.S. life and annuity marketplace.
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.
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.
Manu Sareen, Global Atlantic’s Head of Reinsurance, commented, “Global Atlantic’s involvement was important for the sale and showcased our ability to develop custom reinsurance solutions for our clients. We believe the recent higher interest rate environment has been more conducive for transactions involving similar spread-based reserves.”