Global Atlantic strikes $8.5bn reinsurance deal with Unum

​US-base life and annuity re/insurance company Global Atlantic Financial Group has signed a $8.5 billion reinsurance deal with Unum Group.

​The transaction involves a closed block of individual disability income business backed by $8.5 billion in assets. This is the third block reinsurance deal for Global Atlantic in 2020, totaling over $16 billion of assets.

Global Atlantic’s subsidiaries will invest alongside its Ivy co-investment vehicle. In total following this transaction, Ivy will have deployed approximately 60 percent of its capital commitments.

The deal is expected to be closed in two phases, with approximately $7 billion in assets closing concurrent with signing and the remaining $1.5 billion expected to close in the first quarter of 2021.

Manu Sareen, president of Global Atlantic’s institutional business, said: “We are pleased to provide a long-term solution that meets Unum’s capital objectives and strategic goals for its legacy closed block of individual disability income business. This is a seasoned run-off block of business with a rich history of data and stability of cash flows that are very attractive to Global Atlantic.”

Unum Group’s president and CEO Richard McKenney, said: “Global Atlantic’s experience in executing block deals like these made them an ideal partner for us. The team’s collaborative approach resulted in a custom solution tailored specifically to meet our financial objectives.”

In July 2020, Global Atlantic agreed to be acquired by a subsidiary of KKR & Co. The transaction, which is expected to close in early 2021.