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 house owners.
KKR already owns 63% of International Atlantic’s inventory. The minority-owner buyers have 37%.
International Atlantic is a serious issuer of mounted annuities, with $4.5 billion in fixed-rate deferred annuity gross sales within the first three quarters of the yr and $2.5 billion in non-variable listed annuity gross sales, in response to 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 secure than we thought,” Nuttall mentioned. “We need to personal extra of these earnings.”
KKR can also be hoping to extend gross sales of its personal personal wealth merchandise, akin to personal credit score and personal actual property preparations, by means of International Atlantic’s distribution staff, Nuttall mentioned.
What it means: If International Atlantic is providing annuities to shoppers, it could additionally begin providing them personal funding preparations.
The family tree: Goldman Sachs shaped 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.