Equitable to reinsure book of Venerable’s legacy variable annuity policies

Equitable Holdings has closed its transaction to reinsure legacy variable annuity policies sold between 2006 and 2008 with Venerable Holdings. AllianceBernstein will serve as the preferred investment manager for the transferred general account assets.

As part of the transaction, the company also announced that its in-force variable annuity reinsurance entity, Corporate Solutions Life Re, has been acquired by Venerable.

“We are pleased to have successfully closed Equitable’s landmark legacy variable annuity reinsurance transaction,” said Robin Raju, chief financial officer, Equitable. “Thanks to our fair value economic approach to managing the business, and the diligent efforts of our teams, we achieved a timely closing. Today’s announcement marks a pivotal milestone for Equitable as we further de-risk our balance sheet and enhance our focus on value-accretive and capital-resilient businesses to drive long-term shareholder value.”

In accordance with the terms of the agreement, Equitable Holdings has acquired a 9.09% equity stake in Venerable’s parent holding company, VA Capital Company. In connection with such investment, the company will have the right to designate a member of the board of managers of VA Capital Company.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.