Venerable Completes Acquisition from Equitable Holdings

Rhea-AI Summary

Venerable Holdings has successfully acquired Corporate Solutions Life Reinsurance Company from Equitable Holdings (NYSE: EQH), enhancing its assets under management to approximately $70 billion. The deal includes reinsurance of a legacy variable annuity block worth $36.5 billion, effectively doubling Venerable's general account assets from $9 billion to $19 billion. Equitable Holdings will hold a 9.09% equity stake in Venerable's parent company, VA Capital Company LLC. This acquisition aims to optimize liquidity and operational efficiencies, showcasing Venerable's capability in managing variable annuity liabilities.

Positive

• Acquisition enhances Venerable's assets under management to approximately $70 billion.
• General account assets doubled from $9 billion to $19 billion post-acquisition.
• Transaction includes reinsurance of a $36.5 billion legacy variable annuity block.
• Optimized liquidity and operational efficiencies achieved through the acquisition.

Negative

• None.

WEST CHESTER, Pa., June 1, 2021 /PRNewswire/ -- Venerable Holdings, Inc. ("Venerable") today announced the completion of its acquisition of Corporate Solutions Life Reinsurance Company ("CS Life Re"), a Delaware domiciled and New York licensed reinsurance company, from Equitable Holdings, Inc. (NYSE: EQH) ("Equitable Holdings"). With the close of this transaction, Venerable's pro forma assets under management and reinsurance increase to approximately $70 billion.

On a pro forma basis, Venerable has more than doubled its general account assets from $9 billion to $19 billion, in addition to over $51 billion in separate account reinsured. The transaction includes reinsurance of a legacy variable annuity block from Equitable Financial Life Insurance Company with the combined deal representing $36.5 billion of underlying account value and general account assets. Venerable has also reinsured its existing business into CS Life Re, enabling operating efficiencies and optimizing liquidity for its collective book of business.

Equitable Holdings will take a noncontrolling 9.09% equity stake in Venerable's parent holding company, VA Capital Company LLC. Pending regulatory approval, a member of Equitable Holding's management team will be appointed to the VA Capital Company LLC board.

David Marcinek, Chairman of Venerable, said, "The completion of this acquisition demonstrates Venerable's aptitude in executing complex transactions while continuing to showcase our expertise in the management of variable annuity liabilities. We welcome Equitable Holdings to our board and look forward to delivering exceptional financial results to all investors as we leverage our strong capitalization to aggressively pursue future growth opportunities."

A small dedicated team supporting CS Life Re has transitioned from Equitable Holdings to Venerable. AllianceBernstein L.P. has been retained as the preferred investment manager for most of the general account assets associated with this transaction, and Voya Investment Management will continue to be the preferred asset manager for the majority of Venerable's existing book of business.

"We are thrilled to welcome the CS Life Re team to our organization," said Pat Lusk, CEO of Venerable. "They join a community of experienced and talented professionals who have consistently delivered against financial and business goals and positioned Venerable to achieve success."

Barclays served as financial advisor, and Sidley Austin LLP served as legal counsel to Venerable in connection with this transaction.

About Venerable

Venerable is a privately held company with business operations based in West Chester, Pennsylvania and Des Moines, Iowa. Venerable owns and manages legacy variable annuity business acquired from other entities. Created by an investor group led by affiliates of Apollo Global Management, LLC, Crestview Partners, Reverence Capital Partners, and Athene Holdings, Ltd., Venerable is a business with well-established, strategic investors, experienced in successfully building and growing insurance businesses with patient, long-term capital. For more information, please visit www.venerable.com.

Contact:

Venerable
Allison Proud
Corporate Communications
+(610) 249-9730

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SOURCE Venerable

FAQ

What is the significance of Venerable's acquisition of CS Life Re?

The acquisition allows Venerable to significantly increase its managed assets and optimize operations.

How much did Venerable increase its assets after acquiring CS Life Re?

Venerable's assets under management increased to approximately $70 billion following the acquisition.

What percentage of equity will Equitable Holdings hold in Venerable after the acquisition?

Equitable Holdings will maintain a 9.09% equity stake in Venerable's parent company.

What are the expected operational benefits of this acquisition for Venerable?

The acquisition is expected to enhance operating efficiencies and optimize liquidity for Venerable's business.