West Chester-based Venerable Holdings, the owner and manager of a legacy variable annuity business, recently entered into a definitive agreement with Corebridge Financial to re-insure approximately $51 billion of variable annuity business from American General Life Insurance Company (AGL) and The US Life Insurance Company in the City of New York (USL).
Venerable also will acquire SunAmerica Asset Management, Corebridge’s investment adviser, LLC (SAAMCo).
When the deal closes, Venerable’s total assets under risk management will increase, on a pro forma basis as of March 31, by approximately 77 percent from $67 billion to $118 billion. SAAMCo employees will transition to Venerable. In addition, Venerable will begin variable annuity new business flow re-insurance from AGL.
“Today’s announcement affirms Venerable as the partner of choice in the variable annuity risk transfer space and advances aspirations to expand our growth strategy to include variable annuity flow re-insurance,” David Marcinek, Venerable chairman and CEO, said. “The efficient and effective standup of Venerable Advisers additionally allowed us to offer Corebridge solutions that others in the industry could not, including expertise in managing separate account assets.”
The AGL re-insurance transaction is expected to close during the third quarter while the USL re-insurance transaction and SAAMCo acquisition are expected to close during the fourth quarter.