Global Atlantic reinsures $9bn following Talcott sale

Global Atlantic Financial Group will reinsure around $9 billion of fixed annuities and other spread-based reserves following The Hartford's sale of Talcott Resolution.

This reinsurance transaction is expected to provide significant capital and economic accretion incorporated in the purchase price to The Hartford.

The blocks Global Atlantic is reinsuring are fixed annuities that were distributed primarily through banks and broker-dealers, as well as other spread-based reserves.

Hartford is selling Talcott for a total value of around $3 billion to a buyer consortium led by Cornell Capital, Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook and J Safra Group.

The group of investors has plans to form a new company that will purchase Hartford Life, the holding company for the Talcott Resolution operating subsidiaries, for a net payment of $1.44 billion in cash.

"Global Atlantic utilised its risk, investment and transaction expertise to help both the buyer and seller meet their stated objectives," said Manu Sareen, who heads Global Atlantic’s reinsurance business. "This transaction further exemplifies Global Atlantic’s ability to provide value-maximizing, customized solutions for our reinsurance clients."

Since its founding, Global Atlantic has reinsured or acquired over $45 billion of assets.

Beth Bombara, chief financial officer of The Hartford, added: "This reinsurance transaction enhances the value and risk profile of Talcott Resolution. Global Atlantic’s insurance experience and customized approach played a significant role in the overall transaction."

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