Posted by (07/08/2020 American Life Insurance Guide (Irvine)) KKR, a private equity group based in New York, officially announced today that it will acquire from investors for $44 billion. Global Atlantic(Global Atlantic Financial Insurance Group).
Global Atlantic's influence in the Chinese community
Global Atlantic (referred to as GA) in the Chinese life and wealth management industry isForeigner underwriting business"And well-known. According to the industry, this is aimed at Chinese people,"You can insure as soon as you get off the plane"One of the very few American insurance companies.
According to public market data forecasts, the number of personal insurance policies for non-U.S. residents (foreigners) accounts for Global Atlantic(Global Atlantic Financial Insurance Group) A certain percentage of personal insurance holdings.
In the past few years, Global Atlantic has been trapped in variousControversy, related newsContinuously.In the current historically low interest rate situation, the smooth sale to KKR means more of a win-win situation for the counterparty as a private equity investment company.
Benefits of KKR's acquisition
The listed group KKR will use its balance sheet funds to complete the transaction.After the completion of the acquisition of Global Atlantic, KKR’s total assets under management, AUM, will increase by one third.Reached 2,790 billion U.S. dollars.
The huge benefit of this transaction to KKR is that it will increase the amount of KKR's "permanent capital" funds by more than three times.This means that KKR’s fundsIt is possible to make a sustainable investment without having to return it to the customer.
"Insurance plays an important role in protecting the financial security of thousands of individuals," KKR and COO Joseph Pei and Scott Nutal said in a statement to the media. "This transaction... . Greatly improved our position in the insurance industry... ”
KKR's acquisition department is well-known in the industry for its "snake swallowing elephant" bold operations.In the 1970s and 1980s, KKR initiated acquisitions of giants such as the food and tobacco group RJR Nabisco.
In the announcement of Global Atlantic (Global Atlantic Financial InsuranceAfter the acquisition of KKR & Co. Inc. (KKR), the share price of KKR & Co. Inc. (KKR) rose by 7 percentage points.Increased from $30.80 to $33.15.
Industry Commentary
American Life Insurance Guide©️ Commentators believe that Voya, who went out of business (Voya Insurance) The reorganization of the senior management team and Global Atlantic, to the acquisition of Aviva North America to fill the brand history, and finally the industry’s recognized underwriting process that is relatively simple, or even a “water release”, to quickly expand the performance report... From PE In terms of the market rather than the life insurance field,The Global Atlantic team has made a full set of preparations for telling this story in the capital market.
In 2020, the Fed continuously cut interest rates and became the final catalyst.
With the price of $44 billion, the original equity investors are retreating. Does it present a vividly "drumming and fancy" trade show for capital players?Is the most popular re-enactmentPrivate Equity GroupOnU.S. healthcare sectorCapital operation?
In this capital merger process, the overseas and domestic Chinese community policyholder groups have made a certain “contribution” to the story of expanding Global Atlantic's entire basic market and participating in the improvement of the capital market.
After the original private equity investors cash out and leave the market, how will KKR guarantee and honor its commitments to these groups of Global Atlantic Chinese policyholders?American Life Insurance Guide©️ will pay more attention to and follow up the report.
appendix
01. "KKR to buy life insurer Global Atlantic for $4.4bn", Financial Times, 07/08/2020, https://www.ft.com/content/287774db-f272-4e36-b0f4-8fadcbf2033b
