Global Atlantic signs multi-billion dollar deal to reinsure AXA life policies in Asia

Global Atlantic Assurance, the Bermuda-based subsidiary of Global Atlantic Financial Group (Global Atlantic), a US-focused annuity and life re/insurance company, has signed a $4.8 billion reinsurance transaction with AXA China Region Insurance Company Bermuda (AXA HK).

It was Global Atlantic’s first block reinsurance transaction sourced outside the US.

AXA HK reinsured a closed block of whole life insurance policies, originated in Asia, and backed by $4.8 billion in assets. AXA HK will continue to service and administer the policies as insurer of the reinsured block of business. The deal closed on July 12.

Manu Sareen, president of Global Atlantic’s institutional business, said: “Our tailored, relationship-based approach translates well outside the US, and we’re excited to serve the international market when the right opportunities present themselves.”

The previously announced Ivy co-investment vehicle will invest alongside Global Atlantic Assurance. Global Atlantic will be responsible for managing risk for business ceded to Ivy.

Sidley Austin served as legal counsel to Global Atlantic in connection with this transaction.

Global Atlantic has reinsured approximately $65 billion of assets since its inception in 2004.