GLOBAL ATLANTIC AGREES TO REINSURE $8BN OF AMERIPRISE ANNUITIES

US life/annuity re/insurer Global Atlantic Financial Group has reached an agreement for two of its operating units to reinsure $8bn of Ameriprise Financial’s fixed-rate and income annuities and a small book of fixed-index annuities. Global Atlantic’s Commonwealth Annuity and Life Insurance and First Allmerica Financial Life Insurance units will reinsure annuities issued by Ameriprise’s RiverSource Life Insurance and RiverSource Life Insurance Co of New York subsidiaries. While ceding $8bn of annuity reserves, Ameriprise will still administer the policies. The transaction with Commonwealth Annuity is slated to close next month, while the deal with First Allmerica remains subject to regulatory approval. With the deal, Global Atlantic, majority-owned by KKR, will have reinsured around $60bn of assets since its inception in 2004.