Voya Financial has signed an agreement with Resolution Life to offload its individual life and other legacy non-retirement annuities businesses.
The blocks of business being divested include those that Voya had earlier closed to new sales and comprises considerably all of the company’s individual life insurance business.
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It also includes fixed and variable annuities as well as pension risk transfer liabilities along with other similar blocks.
Under the terms of the agreement, Resolution Life US will buy Voya’s two subsidiaries including Security Life of Denver Insurance Company (SLD) and Security Life of Denver International Limited (SLDI).
Voya will reinsure the life insurance, pension risk transfer and non-retirement annuities business issued by Voya Retirement Insurance and Annuity Company (VRIAC), ReliaStar Life Insurance Company (RLI), and ReliaStar Life Insurance Company of New York (RNY) to SLD.
As part of the agreement, Voya will maintain ownership of VRIAC, RNY and RLI. It will also take a $225m interest in Resolution Life, the parent investment fund of Resolution Life US.
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By GlobalDataVoya Financial chairman and CEO Rodney Martin, Jr., said: “This transaction enables Voya to realize significant value for these legacy blocks and will allow us to fully focus on our high-growth, high-return, capital-light businesses.
“It will further enable us to expand our leadership position as one of the foremost retirement, asset management and employee benefits companies in the US, while also enabling us to generate greater value for all of our stakeholders.
“This transaction completes the restructuring effort that began with our initial public offering in 2013, begins a new chapter in Voya’s future, and will further distinguish Voya from its competitors as a company with a compelling business mix.”
Subject to receipt of regulatory approvals, the transaction is expected to conclude by 30 September next year.
