KKR & Co. has agreed to pay $2.7 billion to purchase full management of International Atlantic Monetary Group, a life insurance coverage and annuity insurer and reinsurer, from minority homeowners.
KKR already owns 63% of International Atlantic’s inventory. The minority-owner traders have 37%.
International Atlantic is a significant issuer of mounted annuities, with $4.5 billion in fixed-rate deferred annuity gross sales within the first three quarters of the 12 months and $2.5 billion in non-variable listed annuity gross sales, in keeping with LIMRA.
Scott Nuttall, KKR’s co-chief government officer, mentioned Wednesday, throughout a convention name with securities analysts, that KKR is shopping for full management as a result of it likes how International Atlantic has carried out within the face of COVID-19, geopolitical turmoil and the spike in rates of interest.
“It’s much more steady than we thought,” Nuttall mentioned. “We wish to personal extra of these earnings.”
KKR can also be hoping to extend gross sales of its personal non-public wealth merchandise, equivalent to non-public credit score and personal actual property preparations, via International Atlantic’s distribution staff, Nuttall mentioned.
What it means: If International Atlantic is providing annuities to purchasers, it might additionally begin providing them non-public funding preparations.
The family tree: Goldman Sachs fashioned International Atlantic in 2004, to function its reinsurance arm. The enterprise acquired two different insurers, separated from Goldman Sachs in 2013 after which purchased a 3rd insurer, Forethought Life, in 2014.
KKR acquired what was initially a 60% stake within the Hamilton, Bermuda-based firm in 2021.
