KKR To Buy Life Insurer Global Atlantic For $4.4B

Private-equity giant KKR announced it has agreed to buy the retirement and life insurance company Global Atlantic Financial Group in a deal that will boost the company’s assets under management, reported Wall Street Journal. 

The private-equity firm stated it would pay the amount of Global Atlantic’s book value as of the deal’s closing, through a combination of cash, proceeds from potential minority co-investors, and debt or equity. Global Atlantic’s book value as of March 31 was about US$4.4 billion, the companies stated. The deal is expected to close in early 2021.

KKR stated the acquisition would expand its existing insurance businesses, which include managing US$26 billion in assets on behalf of insurance companies. Global Atlantic has more than two million policyholders, the companies stated.

With the deal, KKR announced it would increase its assets under management to US$279 billion from US$207 billion, as of March 31. The firm’s permanent capital as a percentage of assets under management would rise to 33% from 9%, it stated.

Full Content: Wall Street Journal

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