The deal would represent considered one of the biggest divestments of such coverage books these days. Insurance businesses had been offloading such blocks, inclusive of regulations in areas in which no new commercial enterprise is being underwritten, to free up coins to spend money on extra worthwhile elements of their operations.
The sources asked now not to be identified because the matter is exclusive. A spokesperson for Great-West said “as a be counted of coverage, we don’t touch upon speculation or rumors”.
Goldman Sachs Group Inc (GS.N) is arranging the sale process, the resources said. A spokesperson for Goldman declined to comment.
The portfolio of run-off coverage enterprise being marketed via Great-West includes established settlements, pay-out annuities, and company or financial institution-owned life coverage (COLI/BOLI), the resources stated. Some organization benefits regulations are also a part of the sale, one in all them stated.
Management on the Winnipeg-based totally insurer held conferences in mid-August with potential bidders which had made it thru an initial spherical of bidding, in step with the only supply.
Among the parties to have proven hobby within the guidelines consist of different insurance companies and monetary businesses, a second supply said.
Private equity firms and specialist investment firms consisting of Athene Holding (ATH.N) and Wilton Re had been huge consumers of run-off insurance blocks, believing they are able to juice the income from administering such rules by way of slicing charges.
Among the largest such transactions nowadays are the $2.05 billion sale of Hartford Financial Services Group’s (HIG.N) existence coverage and annuity run-off agencies to a collection of buyers, and Wilton Re’s $14 billion deal related to Aegon NV’s’ (AEGN.AS) pay-out annuity and COLI/BOLI agencies inside the United States.