A company that hauls away life insurers’ unwanted blocks of business has agreed to buy Voya Financial Inc.’s remaining blocks of individual life, individual annuity and pension risk transfer business.
Resolution Life Group Holdings Ltd. plans to pay Voya $902 million in cash up front for the unwanted blocks of business, Resolution Life announced today.
Voya could get an additional $123 million in cash if the blocks do well over the five-year period after the deal is completed, and Voya will receive a $225 million stake in Resolution Life, Resolution Life said.
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The deal could have a total value of $1.25 billion, according to Resolution Life.
The companies hope to complete the deal by Sept. 30, 2020.
Voya is a New York-based financial services company that holds ING Groep N.V.’s old U.S. insurance and financial services operations. ING itself acquired businesses from many sellers over the years, including Security Life of Denver and Aetna Inc.
ING ran into trouble during the 2007-2009 Great Recession. When the Dutch government provided financial support to help ING get through the crisis, officials required the company to divest itself of its U.S. financial services operations.
Voya became an independent company with stock that trades on the New York Stock Exchange. It transferred responsibility for a large block of business, including the bulk of its annuity business, to Athene Holdings Ltd. in 2018.
Rodney Martin Jr., Voya’s chairman, said in Voya’s deal announcement that the company plans to invest much of the cash from the deal in its retirement plan, investment management, and employee benefits businesses.
“This transaction completes the restructuring effort that began with our initial public offering in 2013, begins a new chapter in Voya’s future, and will further distinguish Voya from its competitors as a company with a compelling business mix,” Martin said.