Global investment firm KKR & Co. has closed its previously-announced strategic transaction to acquire all outstanding shares of life and annuity provider Global Atlantic Financial Group.
Global Atlantic has delivered strong performance since the transaction was announced in July 2020. Based on preliminary financial results of Global Atlantic as at the end of December 2020, the estimated value of the firm’s assets to be managed by KKR as of the closing is approximately $90 billion.
Driven principally by three reinsurance block transactions, this represents asset growth of approximately 25% since the announcement of the transaction.
With the deal now finalised, Global Atlantic will continue to be led by Chief Executive Officer Allan Levine and its existing senior leadership team, with the business continuing to operate as a separate company.
KKR will serve as investment manager for Global Atlantic, allowing Global Atlantic to gain access to KKR’s leading origination engine and asset management capabilities while maintaining a prudent risk-adjusted investment strategy.
Joseph Bae and Scott Nuttall, Co-Presidents and Co-Chief Operating Officers of KKR, said: “Since we announced this transaction, Global Atlantic’s success has been remarkable, and in many ways we are well ahead of our initial expectations.
“We welcome Global Atlantic to the KKR family and look forward to supporting its policyholders and clients through our asset management and origination capabilities, as well as our global network.”
Allan Levine, Chairman and Chief Executive Officer of Global Atlantic, said: “This is an exciting day for Global Atlantic. Being a part of KKR strengthens our position as a leading U.S. annuity and life insurance company, enhances our ability to deliver compelling solutions for our clients and deepens our access to long-term strategic capital.
“Our strong results to date were driven by our people and culture. We are thrilled to be working with the KKR team to capitalise on the significant opportunities we see in front of us. In KKR we have a tremendous partner who shares our values, is aligned around our vision, and committed to our success.”
