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Investment Firm Closes on Global Atlantic Acquisition

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An investment company now owns one of the largest U.S. issuers of non-variable annuities.

KKR & Co. Inc. has completed efforts to acquire Global Atlantic Financial Group Ltd., through a deal with a total value of about $4.7 billion. KKR now has about a 60% stake in Global Atlantic.

(Related: KKR Agrees to Buy Global Atlantic for About $4.4 Billion)

KKR is a New York-based financial services company with stock that trades on the New York Stock Exchange.

Global Atlantic descends from an insurance investment operation created by Goldman Sachs in 2004. Goldman Sachs turned Global Atlantic into a separate company in 2013.

Over the years, Global Atlantic has acquired Allmerica Life, Forethought Life Insurance Company and the U.S. arm of Aviva PLC. Through the Forethought Life deal, Global Atlantic ended up with the heart for Hartford Financial Services Group Inc.’s annuity origination business.

KKR announced plans to acquire Global Atlantic in July 2020. The companies said at the time that they hoped to close on the deal in early 2021.

Since then, Global Atlantic has reinsured $5.7 billion in annuities for Great American and  $7.1 billion in individual disability insurance for Unum Group,

Global Atlantic has brought KKR about $90 billion in assets to manage and relationships with about 2 million annuity contract holders and life insurance policyholders.

Same Leadership, Separate Company

KKR says Allan Levine, Global Atlantic’s chief executive officer, will continue to lead Global Atlantic, which will continue to operate as a separate company under the direction of the current leadership team.

Levine said in a statement included in the consummation announcement, that being part of KKR will give Global Atlantic better access to long-term strategic capital.

Scott Nuttall, KKR’s co-president, said in August, during a conference call with securities analysts, that he still likes the annuity market, in spite of the current effects of low interest rates on annuity operations.

“Our view is that, if anything, this low rate environment is going to drive demand for savings products that have tax deferral,” Nuttall said. “And, really, that’s what an annuity product is… . So, we’re not of the view that the last few months is a long-term trend. We believe that we’ll continue to see organic growth by virtue of that need for yield.”

— Read Global Atlantic Wants to Talkon ThinkAdvisor.

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