Venerable Holdings has received all required regulatory approvals to reinsure $12 billion of legacy variable annuity business from Equitable Financial Life Insurance Company.
As part of the transaction, which was announced in October last year, Venerable will also acquire Corporate Solutions Life Reinsurance Company, a Delaware domiciled variable annuity reinsurance company that has been in run-off since 2002.
Overall, the deal will more than double Venerable’s general account assets bringing them from $11 billion to $24 billion with reinsured business growing to over $46 billion in separate account value.
Upon completing the transaction, Venerable plans to reposition all existing business into the Corporate Solutions Life Re entity to improve its liquidity position and enable several operating efficiencies.
The deal will also generate $1.2 billion of value for Equitable Holdings, including an expected $800 million capital release, a positive ceding commission and consideration for Corporate Solutions Life Re totalling $300 million, and $100 million in tax benefits.
The company expects the transaction to close in the second quarter of 2021.