Resolution Life Adds $1.6 Billion in Capital
The company plans to use the cash to buy and reinsure blocks of life insurance and annuity business.
A company that hauls away life insurers’ unwanted blocks of life insurance and annuity business now has more cash it can use to do that.
Resolution Life Group Holdings LP says it has raised $1.6 billion in new capital for making life insurance portfolio deals. The Hamilton, Bermuda-based company has raised a total of $5 billion in capital since it came to life in 2018.
The investors are financial institutions, insurance companies, pension plans, sovereign wealth funds and family offices, the company says.
Resolution Life acquired a $1.25 billion block of individual life insurance and annuity business from Voya Financial Inc. earlier this year.
Now managing $60 billion of assets, the company employs 1,500 people and has connections with about 2.5 million policyholders, according to company figures.
Resolution Life said it could use the new capital either to acquire companies or to acquire responsibility for blocks of business through reinsurance arrangements.
The COVID-19 pandemic has created opportunities for the firm to make deals by pushing insurers to dispose of old blocks of business and free some of the capital supporting that business, Resolution Life said.
It added that it may be an appealing buyer for some sellers because it simply wants to manage blocks of in-force business and is not out competing for new business.
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