Voya Financial will sell substantially all of its life insurance and other legacy non-retirement annuities businesses to Resolution Life
Resolution Life Group has entered into agreement with Voya Financial to acquire its the in-force individual life business for $1.25bn.
The sale substantially includes all of its individual life insurance business, fixed and variable annuities that were not included in the last year sale of its annuities business, pension risk transfer liabilities and other similar blocks.
The transaction will include Voya’s Security Life of Denver Insurance Company (SLD) and Security Life of Denver International (SLDI) subsidiaries and will be acquired by Resolution Life US, created by Resolution Life to hold these blocks of business.
Additionally, Voya will reinsure the life insurance, pension risk transfer and non-retirement annuities business issued by ReliaStar Life Insurance Company (RLI), Voya Retirement Insurance and Annuity Company (VRIAC), and ReliaStar Life Insurance Company of New York (RNY) to SLD.
Voya will take $225m stake in Resolution Life
Voya will retain ownership of VRIAC, RNY and RLI and will also take $225m stake in Resolution Life, the parent investment fund of Resolution Life US.
Voya Financial chairman and CEO Rodney O. Martin, Jr., said: “This transaction enables Voya to realize significant value for these legacy blocks and will allow us to fully focus on our high-growth, high-return, capital-light businesses.
“It will further enable us to expand our leadership position as one of the foremost retirement, asset management and employee benefits companies in the United States, while also enabling us to generate greater value for all of our stakeholders. Voya will continue to benefit from our diverse revenue and earnings sources and will have an improved risk profile with reduced interest rate, credit and mortality risk.
Following the completion of the transaction, nearly all of Voya employees currently supporting the businesses in the transaction are expected to become employees of Resolution Life US.
Based on 30 September balances, the general account assets associated with the products included in the transaction were $24bn.
Voya Investment Management (IM) will be appointed investment manager for $20bn of the assets, including core fixed income and specialty asset classes. It will also serve as a preferred asset management partners for Resolution Life.