T. Rowe Price inks strategic relationship with US insurer
T. Rowe Price has formed a strategic relationship with a US life insurance and annuity company which will see the asset manager manage its public and private assets.
In association with T. Rowe’s alternative credit subsidiary Oak Hill Advisors, the two companies will manage certain public and private assets of Aspida, as well as explore product development and other growth initiatives.
Aspida, which launched in 2020, is backed by alternative investment manager Ares Management Corporation which has US$464 billion in assets under management. The firm has $19 billion in assets and focuses on retirement and reinsurance solutions for annuity and institutional clients.
The firms said, in a joint statement, this deal will support the “growing intersection of traditional asset management, alternative investments and insurance”. T. Rowe already manages over US$1 trillion in retirement-related assets out of a total of US$1.6 trillion in assets under management.
Rob Sharps, chair and chief executive at T. Rowe Price, said: “We are excited about the potential of this strategic partnership with Aspida and its implications for our broader growth in insurance. The partnership highlights our continued commitment to the expansion of our insurance business and to delivering innovative investment opportunities for our clients with our customary high-touch service. We look forward to the opportunity to develop tailored solutions with Aspida and other insurance partners over time.”
Lou Hensley, chief executive of Aspida, said: “This announcement marks another significant step in our commitment to delivering exceptional financial security and service to our clients. The deep investment and retirement market experience brought by T. Rowe Price and OHA, combined with the continued support of Ares, position us to develop even stronger, more innovative solutions, tailored to the needs of those we serve.”
At the end of 2024, MLC Life Insurance and Resolution Life announced a merger following the total acquisition of Resolution Life’s Australasian subsidiary by Nippon Life Insurance Company.
On completion of the acquisition, MLC Life Insurance and Resolution Life Australasia will merge, forming one of Australia’s largest life insurance businesses, with the combined business to operate under the name Acenda.
In addition to acquiring 100 per cent of Resolution Life Australasia, Nippon Life also acquired the remaining 20 per cent share of MLC Life that National Australia Bank (NAB) had retained since 2016, when Nippon initially acquired an 80 per cent stake in the insurer.
AUTHOR
Laura Dew
Recommended for you
Sydney-based alternative fund manager East Coast Capital Management has formed its first advisory council as it enters its next phase of growth.
With 40 per cent of advice practices looking to increase their ETF usage, the next frontier being embraced is smart beta ETFs with flows doubling in July, providers have said.
Australian ETFs saw flows of $5.8 billion in July, more than double the previous month, and adviser adoption is tipped to help total flows reach $50 billion by the end of the year.
Pinnacle’s London affiliate, Life Cycle Investment Partners, has secured over $15 billion in FUM in its first year and achieved profitability, the firm’s fastest affiliate to do so.
