Ameriprise headquarters in Minneapolis (Photo: Ameriprise)

A unit of Global Atlantic Financial Group has agreed to take responsibility for $1.7 billion in fixed annuity obligations off the hands of Ameriprise Financial Inc., Ameriprise announced today.

Commonwealth Annuity and Life Insurance Company is the Global Atlantic unit reinsuring the block of annuities.

(Related: Global Atlantic Updates Its Indexed Annuities)

RiverSource Life Insurance Company is the Ameriprise unit that has been responsible for the annuities.

Ameriprise said today that the annuities were sold through other companies and had accounted for about 20% of in-force fixed annuity account balances at Ameriprise.

The annuity contract terms will stay the same, and RiverSource will continue to administer and service the contracts, Ameriprise said.

The deal should help Ameriprise free up about $200 million in capital, Ameriprise said.

The Ameriprise annuity unit reported $51 million in pretax adjusted operating earnings on $613 million in adjusted operating total net revenue for the fourth quarter of 2018.

— Read Q4 Earnings Vortex Report: Great American, Ameriprise, Principalon ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on LinkedIn and Twitter.