Equitable and Global Atlantic in $10bn deal
Global Atlantic Financial Group, the Bermudian-based financial services company, has announced a $10 billion group annuity reinsurance agreement with Equitable Financial Life Insurance Company to reinsure a portion of its group retirement annuities.
The business Global Atlantic will reinsure has $10 billion in general account and separate account value.
Under the terms of the agreement, Equitable Financial Life Insurance Company, a subsidiary of Equitable Holdings Inc, will transfer approximately $3 billion in general account assets under management to Global Atlantic subsidiary First Allmerica Financial Life Insurance Company.
Equitable will retain servicing and administration of the policies and separate account funds, which will be ceded on a modified coinsurance basis.
The deal is expected to close during the fourth quarter, subject to fulfilment or waiver of customary closing conditions, including receipt of regulatory approvals.
“Equitable’s financial, risk and counterparty objectives aligned well with our ability to manage both spread and fee-based liabilities for an attractive, comprehensive solution,” said Manu Sareen, co-president and head of institutional markets for Global Atlantic.
“We are excited to put our execution experience, strong balance sheet and risk-management capabilities to work with another premier blue-chip provider of retirement products, extending our track record of providing best-in-class reinsurance solutions.”
This transaction also marks Global Atlantic’s second block reinsurance transaction in 2022, having reinsured a diverse block of annuities totalling $4 billion in March.
With this deal, the company said, Global Atlantic further advances its position as a leading reinsurance franchise in the annuity and life insurance marketplace, having reinsured approximately $80 billion of assets since its inception in 2004.