WEST CHESTER, PA — Venerable Holdings, Inc. recently initiated a new flow reinsurance arrangement and finalized a broader reinsurance transaction with American General Life Insurance Company (AGL), a Corebridge Financial, Inc. subsidiary, effective August 1. These moves mark a major expansion in Venerable’s variable annuity risk management business.
The new flow reinsurance agreement, which involves a 100% quota share from Texas-based AGL, is expected to generate roughly $1.25 billion in annual sales. Venerable’s assets under risk management will increase by approximately $48 billion as a result of the transaction.
“The team at Venerable continues to demonstrate unparalleled expertise in all aspects of complex insurance transactions,” said David Marcinek, Chairman and CEO of Venerable. “The successful closing of this transaction in an extremely accelerated timeframe is another clear example. We are excited to advance our growth strategy with the commencement of flow reinsurance and look forward to offering this capability more broadly as part of our suite of risk transfer solutions.”
The reinsured business consists mainly of variable annuity contracts with guaranteed minimum withdrawal benefits (GMWB) issued after 2009, along with a portion of contracts offering death benefits and investment-only variable annuities. AGL will continue administering the block.
This announcement builds on Venerable’s June disclosure that it will also reinsure a block of variable annuities from Corebridge’s New York-based affiliate, The US Life Insurance Company in the City of New York (USL), and acquire SunAmerica Asset Management, LLC (SAAMCo). Both of those transactions are anticipated to close in the fourth quarter of 2025, pending customary approvals.
Once all three transactions are completed, Venerable’s total assets under risk management are projected to rise from $67 billion to $118 billion on a pro forma basis as of March 31, 2025.
Venerable was advised by Citi and Wells Fargo Securities, LLC on the financial side, Milliman, Inc. as actuarial advisor, and Sidley Austin LLP as legal counsel for this transaction.
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