Resolution Life Group Holdings Ltd today announced that it has agreed to acquire the in-force individual life business of US retirement finance and insurance group Voya Financial.
Under the terms of the agreement, Voya Financial will sell substantially all of its in-force individual life business to Resolution Life for a total consideration of $1.25 billion. The sum includes cash of $902 million plus retained surplus notes of $123 million. Voya Financial will also hold a $225 million stake in Resolution Life.
Included in the transaction is Security Life of Denver Insurance Company, Midwestern United Life Insurance Company and certain other affiliates, as well as the reinsurance of Voya Financial’s remaining in-force individual life and annuity blocks.
The acquired business has assets over US$20 billion as at June 30, 2019. Resolution Life will assume responsibility for the administration of the acquired business. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in Q3 2020.
Voya began as ING U.S., the United States operating subsidiary of ING Group, which was spun off in 2013 and established via an initial public offering.
Resolution Life, a global insurance platform, has raised over $3 billion of capital since 2018. Acquisitions to date include the Aus$3 billion acquisition of AMP Life in Australia (expected to close in Q2 2020) and the completion of a reinsurance transaction with Symetra Life Insurance Company with $5.7 billion of reserves.
Sir Clive Cowdery, Resolution Founder and Executive Chairman of Resolution Life (pic) said: “The acquisition of Voya Financial’s individual life business establishes a third growth platform for Resolution Life alongside Resolution Re in Bermuda and AMP Life in Australia and New Zealand and is an important step in delivering Resolution Life’s global strategy. We expect continued growth in the US, with the acquired business as a platform.
“This transaction is further evidence of the continuing restructuring of the life insurance sector in the US and globally. Major life insurance groups continue to reduce their exposure to legacy in-force business and to release trapped capital and resources.”