Resolution Life and Blackstone have partnered up to support the former’s continued growth in the global life and annuity consolidation market.
The strategic partnership will solidify Resolution Life’s position as a leader in the multi-trillion-dollar sector by combining Resolution Life’s global liability management platforms and Blackstone’s insurance asset management capabilities.
Specifically, Resolution Life and Blackstone plan to raise $3 billion of new equity capital commitments – including a $500 million strategic investment from Blackstone, which will bring the company’s equity capital base to more than $8 billion.
In return, Resolution Life will become Blackstone’s strategic partner for new closed book transactions, including reinsurance.
Founder Sir Clive Cowdery will continue to lead Resolution Life as the executive chairman and chief executive officer.
“This partnership accelerates Resolution Life’s growth through access to Blackstone’s capital and investment capabilities,” Cowdery said. “It is a continuation of Resolution’s 20-year mission to be the partner of choice for the life insurance industry and a custodian for its in-force policyholders globally.”
Blackstone will manage an initial target of up to $25 billion of Resolution Life’s existing private assets in the first year. With new transactions and investments pouring in, the total Resolution Life private assets managed by Blackstone are expected to increase to over $60 billion over the next six years.
“We believe that Blackstone’s world-class private credit and asset origination platform and Resolution Life’s leading position in the closed book consolidation market will be a powerful combination,” said Gilles Dellaert, global head of Blackstone Insurance Solutions. “We look forward to working closely with the Resolution Life team in the years ahead to help drive their growth and deliver greater financial security for policyholders.”
Closing is subject to regulatory approval and anticipated to occur in the second half of 2023.
