KKR, the global investment firm, has signed a strategic transaction to acquire Global Atlantic, the leading retirement and life insurance company. As per the agreement, KKR will acquire all of the outstanding shares of Global Atlantic. Global Atlantic shareholders will get an amount equal to 1.0x Global Atlantic’s Book Value that is approximately $4.4 Billion. This is subject to an equity roll-over in the m&A transaction for the existing shareholders.
Global Atlantic policyholders will benefit from KKR’s leading direct origination platforms and asset management capabilities while maintaining its current high-quality bias and investment-grade focus. Global Atlantic will become a significant extension of KKR’s existing insurance business. There will also be an increase in the permanency of assets under management (AUM) from $207 billion to $279 billion.
Global Atlantic that serves more than two million policyholders will continue to operate as a separate business with its existing brands and management team. It is one of the largest fixed rates and fixed indexed annuity providers in the United States.
KKR-Global Atlantic is the second major M&A deal in the insurance sector this week. Earlier Allstate acquired National General Holdings for nearly $4 billion cash deal.