Global Atlantic Financial Group said today that it will provide reinsurance to back a $9 billion portfolio of fixed annuities and other spread-based reserves following The Hartford’s sale of Talcott Resolution to a group of investors, which was announced today.
Life insurance and reinsurance firm Global Atlantic said the deal positions it 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.”
The investor group that is buying Talcott Resolution took advantage of Global Atlantic’s experience and its ability to execute reinsurance deals quickly and so the reinsurance deal provides capital and economic accretion which was incorporated in the purchase price for The Hartford.
“Global Atlantic utilized its risk, investment and transaction expertise to help both the buyer and seller meet their stated objectives,” explained 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,” added The Hartford’s Chief Financial Officer Beth Bombara. “Global Atlantic’s insurance experience and customized approach played a significant role in the overall transaction.”
Global Atlantic is reinsuring fixed annuity blocks of business that were distributed primarily through banks and broker-dealers, as well some other spread-based reserves, which the company said are “consistent with its investment and risk management strengths, as well as its reinsurance and retail business mix.”