An Opportunity for Growth with Venerable Insurance in Legacy Annuities?

**Venerable Insurance's Strategic Move Positions it for Growth in Legacy Annuities**

1. **Significant Transaction and Expansion**: Venerable's acquisition of Corebridge's variable annuity business for $2.8 billion is a substantial move that enhances its total assets under risk management by approximately 77%, increasing it to $118 billion as of March 31, 2025. This expansion significantly bolsters Venerable's portfolio, particularly in the variable annuity space.
2. **Capitalizing on Market Trends**: The transaction aligns with the growing demand for annuities, especially in a market where nearly 30% of annuity buyers prioritize legacy and death benefits. Venerable's strategic focus on risk transfer solutions for variable annuities positions it well to capitalize on this trend.
3. **Complementary Capabilities and Scale**: By acquiring Corebridge's investment adviser, SunAmerica Asset Management, Venerable enhances its capabilities in managing separate account assets, including variable annuities. This acquisition more than triples Venerable's assets under management to approximately $52 billion.
4. **Market Positioning and Growth Prospects**: This landmark transaction affirms Venerable as a key player in the variable annuity risk transfer space. With Corebridge's administration of the blocks retained, Venerable can now focus on delivering a full suite of retirement products, expanding its growth strategy in a capital-efficient manner.
5. **Financial Impact and Shareholder Value**: The transaction is expected to yield roughly $2.1 billion in net distributable proceeds after taxes for Corebridge, which can be directed towards share repurchases, enhancing shareholder value and aligning with Corebridge's capital return strategy.

**Conclusion**: Venerable Insurance's strategic acquisition of Corebridge's variable annuity business presents a significant opportunity for growth, capitalizing on the favorable market conditions and demographic shifts driving demand for annuities. The company's expanded capabilities and scale in the variable annuity space, coupled with its strong financial position, position it well for long-term success in the legacy annuities market.