Resolution moves beyond AMP Life to new transaction

The company which is acquiring the AMP Life business, Resolution Life Group, has made another major acquisition – this time a US$1.25 billion transaction in North America involving the in-force individual life business of Voya Financial Limited.

And in doing so, Resolution Life has made clear its rationale of extracting dividends from what amounts to run-off business from companies which need capital to expand resulting in Resolution Life serving the needs of 10 million policyholders while managing over US$320 billion in assets.

The company announced the Voya transaction overnight and said that Voya would be selling all of its in-force individual life business to Resolution with Voya holding a US$225 million stake on Resolution.

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It said the transaction included the Security Life of Denver Insurance Company, Midwestern United Life Insurance Company and other affiliates as well as the reinsurance of Voya Financial’s remaining in-force individual life and annuity blocks.

The announcement noted that Resolution Life had raised of US$3 billion in capital since 2018 and that its acquisitions included AMP Life, and Symetra Life Insurance.

It said that the AMP Life transaction was expected to be completed in the second quarter of 2020.

Explaining the company’s strategy, Resolution founder and executive chairman, Sir Clive Cowdery said it was evidence of the continuing restructuring of the life insurance sector in the US and globally.

“Major life insurance groups continue to reduce their exposure to legacy in-force business and to release trapped capital and resources.

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