New York, NY — Global Atlantic Financial Group (“Global Atlantic”), a leading U.S.-focused annuity, life insurance and reinsurance company, today announced the signing of an $8.0 billion annuity reinsurance transaction between two of its insurance subsidiaries (Commonwealth Annuity and Life Insurance Company and First Allmerica Financial Life Insurance Company) and Ameriprise Financial (“Ameriprise”) insurance subsidiaries (RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York). The deal is comprised primarily of fixed-rate and income annuities alongside a smaller component of fixed index annuities. The two companies announced their first reinsurance transaction in 2019.
Under the agreement, Ameriprise will cede $8 billion in annuity reserves and retain administration of the policies. The transaction with Commonwealth Annuity is expected to close in July 2021. The transaction with First Allmerica will be subject to regulatory approval.
“We are always happy to find new ways to help existing clients continue to meet their financial objectives,” said Manu Sareen, President of Global Atlantic’s Institutional business. “Our approach has always been to build long-term relationships. By truly knowing our clients and understanding their objectives, we can customize more meaningful solutions for their needs.”
The previously announced Ivy co-investment vehicle will invest alongside Commonwealth Annuity and First Allmerica. Business ceded to Ivy will be managed using Global Atlantic’s leading risk and investment management capabilities.
With this deal, Global Atlantic further advances its position as a leading reinsurance franchise in the U.S. life and annuity marketplace, having reinsured approximately $60 billion of assets since its inception in 2004.
Credit Suisse acted as financial advisors and Debevoise & Plimpton LLP served as legal counsel to Global Atlantic in connection with this transaction.
About Global Atlantic
Global Atlantic Financial Group is a leader in the U.S. life insurance and annuity industry, serving the needs of individuals and institutions. With differentiated investment and risk management capabilities, deep client relationships, and a strong financial foundation, the company has established a track record of delivering proven, value-added solutions and long-term growth. Global Atlantic is a majority-owned subsidiary of KKR, a leading global investment firm that offers asset management and capital markets solutions across multiple strategies.
Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries.
Reinsurance transactions are entered into by Global Atlantic Re Limited, Global Atlantic Assurance Limited, Commonwealth Annuity and Life Insurance Company or one of their affiliates. Reinsurance is placed, where required by applicable law, by Global Atlantic Risk Advisors, L.P., a licensed reinsurance intermediary and subsidiary of Global Atlantic Financial Group Limited.