International life insurance group Talcott Financial has entered into a transaction with The Guardian Life Insurance Company of America to reinsure $7.4 billion in variable annuity liabilities.
The deal will be conducted between subsidiaries Talcott Resolution Life Insurance Company and The Guardian Insurance & Annuity Company, Inc., and will primarily cover contracts with guaranteed living withdrawal benefit and death benefit riders.
It is expected to close by year-end, subject to customary closing conditions.
“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.
Rob Siracusa, Interim Co-President, and Chief Financial Officer for Talcott Resolution, also commented: “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.”
“Talcott is proud of the relationships we have built,” added Imran Siddiqui, Interim President of Talcott Financial Group. “This latest transaction is another example of high-quality counterparties like Allianz Life, Principal Financial Group, Lincoln Financial Group, and Guardian finding value in Talcott’s ability to structure creative and comprehensive solutions for our clients.”
Eversheds Sutherland (US) LLP acted as legal advisor to Talcott for this transaction.