Global Atlantic Financial Group, the majority-owned subsidiary of investment giant KKR, has announced the completion of a $4.8 billion whole life reinsurance deal with China-focused units of AXA Group.
It’s the first block reinsurance transaction sourced from outside of the United States by Global Atlantic, as the company continues to expand and seek to become a major global player in this space.
The US $4.8 billion reinsurance transaction was entered into between Global Atlantic’s Bermuda-based subsidiary Global Atlantic Assurance Limited and AXA Group’s Chinese focused entities, AXA China Region Insurance Company Limited and AXA China Region Insurance Company (Bermuda) Limited (AXA HK).
The agreement sees AXA HK reinsuring a closed block of whole life insurance policies that were originated in Asia and are backed by US $4.8 billion in assets.
AXA HK will continue to act as the policy servicer and administrator, as insurer of the now reinsured block of business.
“Our tailored, relationship-based approach translates well outside the US, and we’re excited to serve the international market when the right opportunities present themselves,” explained Manu Sareen, President of Global Atlantic’s Institutional business.
Global Atlantic leveraged third-party capital in the transaction, by bringing its Ivy co-investment vehicle alongside Global Atlantic Assurance Limited for the reinsurance deal.
The firm will provide risk management for the business ceded to Ivy, which will have been backed by third-party investor capital.
Furthermore, Global Atlantic has now reinsured roughly $65 billion of assets since its inception in 2004.