International life insurance group Talcott Financial has announced the completion of a transaction with The Guardian Life Insurance Company of America to reinsure $7.4 billion in variable annuity liabilities.
First announced last month, the deal was conducted between subsidiaries Talcott Resolution Life Insurance Company and The Guardian Insurance & Annuity Company, Inc.
Under the terms of the agreement, Talcott reinsured a total of $7 billion in variable annuity liabilities, primarily comprised of contracts with guaranteed living withdrawal benefit and death benefit riders.
As part of this transaction, Talcott Resolution will assume administration of the reinsured block in approximately two years.
This marks the sixth business development transaction for the Talcott enterprise since the company’s acquisition by Sixth Street in July 2021.
“This block variable annuity reinsurance transaction complements the flow reinsurance transactions we’ve announced over the past year,” said Lisa Proch, Interim Co-President, General Counsel and Chief Compliance Officer of Talcott Resolution, at the time of the deal’s original announcement.
“This transaction, the sixth overall for the enterprise, further advances Talcott’s position as a premier risk partner in the annuity and life insurance marketplace, having reinsured over $50 billion of assets through block reinsurance transactions since 2021,” added, Rob Siracusa, Interim Co-President, and Chief Financial Officer for Talcott Resolution.
Eversheds Sutherland (US) LLP acted as legal advisor to Talcott for this transaction.