Private equity giant Blackstone is to make a $500 million strategic investment in Resolution Life as part of a wider plan that will see the global life and annuity insurance consolidation business raise $3 billion in new equity capital commitments.
The additional funding, which will bring the company’s overall equity capital base to more than $8 billion, will 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, 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, Sir 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 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.
Blackstone will manage an initial target of up to $25 billion 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 $60 billion over the next six years.
Of the transaction is subject to regulatory approval and anticipated to occur in the second half of 2023.