KKR completes its acquisition of Global Atlantic

Private equity group KKR & Co has closed its acquisition of Global Atlantic Financial Group, the US-based retirement and life insurance company with operations in Bermuda.

Global Atlantic will continue to be led by chief executive officer Allan Levine and its existing senior leadership team. The business will continue to operate as a separate company, with KKR serving as investment manager, allowing Global Atlantic to gain access to its origination engine and asset management capabilities while maintaining its risk-adjusted investment strategy.

The transaction valued Global Atlantic at approximately $4.7 billion. Global Atlantic will operate as a consolidated subsidiary of KKR, with KKR owning a controlling interest in Global Atlantic of approximately 60 percent.

Following the announcement of the transaction, KKR led an equity co-investment process resulting in significant investor demand from new and existing investors, including Global Atlantic’s leadership team, who own the remainder of Global Atlantic. The co-investment process generated an additional $250 million of primary equity capital that will be used to finance growth and add financial flexibility.

Global Atlantic serves more than two million policyholders through its retirement and life insurance products, offering annuities for individuals through a network of banks, broker-dealers, and insurance agencies, as well as life insurance for individuals. It also provides customised reinsurance solutions to its life and annuity clients, including block, flow and pension risk transfer reinsurance.

As at the close of 2020 the estimated value of Global Atlantic’s assets to be managed by KKR is approximately $90 billion. Its assets have grown by approximately 25 percent since the announcement of the KKR transaction in July 2020, driven principally by three reinsurance block transactions.

Joseph Bae and Scott Nuttall, co-presidents and co-chief operating officers of KKR, described Global Atlantic’s success as “remarkable,” and “well ahead of our initial expectations.”

Levine said: “Being a part of KKR strengthens our position as a leading US annuity and life insurance company, enhances our ability to deliver compelling solutions for our clients and deepens our access to long-term strategic capital.”