Posted by (American Life Insurance Guide 12/18/2019 Los Angeles News)Voya Financial Group, Voya Financial, Inc. (NYSE: VOYA) today officially announced that Voya has reached a final sale agreement with Resolution Life Group Holdings (Resolution Life).According to the agreement, Voya will divest its personal life business and other traditional non-retirement annuity businesses.
The divested businesses include the followingAccording to reportsThe new sales business has long been discontinued, specifically:
- Voya's personal life insurance business
- Voya's unsold fixed and variable annuities during the sale of Voya's annuity business in 2018
- Pension risk transfer debt
- Other similar blocks
Details of the acquisition transaction
Through this transaction, Voya's two financial services companies in the United States: Security Life of Denver Insurance Company (SLD) And Security Life of Denver International Limited (SLDI) will be acquired by Resolution Life US, a new holding company created by Resolution Life, to hold the businesses of these two companies.
In addition,Voya will conduct life insurance, pension risk transfer and non-retirement annuity business issued in the name of ReliaStar Life Insurance Company (RLI), Voya Retirement Insurance and Annuity Company (VRIAC), and New York ReliaStar Life Insurance Company (RNY) in the past. Reinsurance, and the underwriting company is SLD. Voya still retains the ownership of the three life insurance companies VRIAC, RNY and RLI.
Voya also received an initial equity of US$2.25 million from the Resolution Life Investment Fund, the parent company of Resolution Life US.
Voya account balance reaches $380 billion
Based on the balance calculation on September 2019, 9, the ordinary account assets related to the products involved in this transaction are US$30 billion.
In this transaction, Voya Investment Management (IM) will be responsible for the investment management of approximately US$200 billion of assets, including core fixed-income assets and special asset classes. Voya IM will also become one of Resolution Life's preferred asset management partners.
According to the terms of the agreement, Voya estimates that the transaction will provide the company with approximately $17 billion in deployable funds.This amount greatly exceedsVoya's previously announced goals, That is, to generate at least US$2019 billion in free cash flow from individual life business from 2024 to 10, and at the same time greatly accelerate the distribution of free cash flow.
After the transaction is completed, Voya's general account balance is approximately US$380 billion.
Transfer of employees and customer departments
Deployable capital includes Resolution Life’s net income of approximately US$15 billion and the company’s previously announced net income of US$2019 million from a reserve financing transaction completed in the fourth quarter of 2 million US dollars of these net income will continue to hold the company's equity.The future financial performance of Resolution Life US within five years after the closing of the transaction.
Voya will transfer all employees in the life insurance and annuity business sectors involved in the transaction to Resolution Life, Lays the foundation for the future business of Resolution Life US and supports the seamless transition of Voya customers.
The transaction has been unanimously approved by Voya's board of directors and is expected to be completed before September 2020, 9, after complying with the closing conditions and obtaining regulatory approval.
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(Reported by American Life Insurance Guide Network)
