Equitable Holdings Inc. will transfer responsibility for $12 billion of retirement-income annuities to a reinsurer tied to private-equity giant Apollo Global Management LLC, as life insurers continue to reduce the risks on their books in a challenging environment for turning profits.
The New York company has entered an agreement with Venerable Holdings Inc. for the privately held company to reinsure a total of 114,000 variable-annuity policies sold between 2006 and 2008. The pact will double Venerable’s total assets, the company said. Venerable got up and running in 2017 with an agreement to buy various annuity portfolios of Voya Financial Inc.
The deal comes as many U.S. life insurers have been selling or reinsuring blocks of business to private-equity-funded companies that are developing expertise in managing the often-complicated products, including hedging the financial risks. Equitable said the deal would free up $1.2 billion in capital, among other benefits. It said it would accelerate return of capital to shareholders, with $500 million of incremental share repurchases in 2021.
I'd rather have a good job& lower taxes($2000more auto deduc)from a Pres who's a strong leader, than 4Trillion tax hike,jobs2other countries&long-lasting shutdown from an older guy who won't talk policies,just blames others,has done no good in 47yrs&often can't complete a thought
Reminds of Dec 1990 when The Equitable announced it would demutualize then taken over by AXA. I sold so many SP Plus Single Premium Deferred Annuities & GICs w 15%+ interest in mid 80s, we knew it was just a matter of time for the ship to sink.
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