Resolution Life and Blackstone announce strategic partnership

Written by Adam Cadle

12/10//2022

Resolution Life and Blackstone have announced a strategic partnership to support the continued growth of the former.

This partnership solidifies Resolution Life’s position as a leader in the multi-trillion-dollar global life and annuity consolidation market by combining Resolution Life’s global liability management platforms and Blackstone’s insurance asset management capabilities.

Resolution Life and Blackstone plan to raise $3bn of new equity capital commitments – including a $500m strategic investment from Blackstone – bringing the company’s overall equity capital base to more than $8bn. The $3bn in capital would be raised through a newly established perpetual capital vehicle with Blackstone serving as the general partner and the majority of Resolution Life’s existing investors expected to roll their investments into this vehicle.

Nippon Life, the largest existing investor in Resolution Life, said it supports the strategic partnership and welcomes Blackstone’s investment and asset management expertise which will contribute meaningfully to the growth and development of Resolution Life.

The enhanced capital base will allow Resolution Life to rapidly scale its growth path in a highly active acquisition market – continuing its mission of being a global custodian to life insurance and annuity policyholders. Resolution Life remains group regulated by the Bermuda Monetary Authority with a strong group capital position, high solvency ratios and investment grade ratings.

Resolution Life founder Clive Cowdery will continue to lead Resolution Life as executive chairman and CEO. Resolution Life will be Blackstone’s strategic partner for the pursuit of new closed book transactions, including reinsurance, in the life and annuity sector globally.

Blackstone will become Resolution Life’s investment manager for certain key areas, including directly originated assets across the private credit, real estate and asset-based-finance markets. The company said it believes the addition of investment and direct origination capabilities from Blackstone will serve as a new competitive advantage for Resolution Life and enhance its ability to serve direct insurance partners in the marketplace.

In order to help take advantage of compelling market opportunities, the Blackstone investment management partnership has commenced upon signing of the transaction.

Blackstone will manage an initial target of up to $25bn of Resolution Life’s existing private assets in the first year. As Resolution Life completes new transactions and new investments are deployed into asset classes managed by Blackstone, total Resolution Life private assets managed by Blackstone are expected to increase to over $60bn over the next six years.

The partnership is expected to bring significant strategic and financial benefits in both the immediate and long-term. The combination of life insurance liability management expertise, operational confidence, investment capabilities and fundraising will provide a continuing commitment to the life insurance industry. Closing is subject to regulatory approval and anticipated to occur in the second half of 2023.

Related Articles