Voya has signed a master transaction agreement on 19 December 2019, to sell its business to Resolution Life, a provider life insurance services
US-based financial, retirement, investment and insurance firm Voya Financial has announced that it expects to close the sale of its individual life and legacy non-retirement annuities businesses to Resolution Life in the fourth quarter of 2020.
The company had signed a master transaction agreement on 19 December 2019, to sell its businesses to life insurance services provider, for a consideration totaling $1.25bn.
Voya and Resolution Life had previously expected to complete the transaction by 30 September 2020.
The company have now announced the shifting of the targeted completion in order to receive remaining regulatory reviews for the transaction.
Resolution Life founder and executive chairman Sir Clive Cowdery said: “Over the past several months, many of us at Resolution Life have had the opportunity to work even more closely with the Voya team and get to know the extremely talented individuals that are managing these closed blocks.
“We have tremendous confidence in the team and in the Voya platform through which we plan to establish and build our presence in the United States.
“Based on past acquisitions that we have completed involving legacy life insurance and annuity blocks, we recognize and appreciate the complexity involved. We look forward to continuing to work with Voya and with each regulator to complete the necessary steps to finalize the transaction in the fourth quarter.”
Voya’s subsidiaries SLD and SLDI will be acquired by Resolution Life
Under the terms of the master transaction agreement, Voya and Resolution Life expected to close the transaction on the first of the month, after the receipt of all regulatory approvals.
Through the transaction, Voya’s subsidiaries Security Life of Denver Insurance (SLD) and Security Life of Denver International (SLDI) will be acquired by a new company Resolution Life US created by Resolution for the transaction.
Also, Voya is expected to reinsure the life insurance, pension risk transfer and non-retirement annuities business issued by ReliaStar Life Insurance (RLI), Voya Retirement Insurance and Annuity (VRIAC), and ReliaStar Life Insurance Company of New York (RNY) to SLD.
Furthermore, the company would retain ownership of VRIAC, RNY and RLI, and will also acquire an interest in Resolution Life, the parent investment fund of Resolution Life US.