Venerable Commences Flow Reinsurance with Corebridge Financial, Adds $48bn to Assets Under Risk Management

Venerable Holdings has commenced new business variable annuity flow reinsurance with Corebridge Financial and closed its reinsurance transaction with American General Life Insurance Company. The flow reinsurance agreement is expected to generate $1.25bn in sales annually and add $48bn to Venerable's assets under risk management. The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits, issued after 2009.

Venerable Holdings, Inc. (Venerable), a leader in innovative risk transfer solutions for variable annuity issuers, has announced the commencement of new business variable annuity flow reinsurance with American General Life Insurance Company (AGL), an entity of Corebridge Financial, Inc. Additionally, Venerable has closed its reinsurance transaction with AGL, effective August 1, 2025 [1].

The flow reinsurance agreement involves 100% quote share from AGL, a Texas domiciled entity, and is anticipated to generate approximately $1.25bn in sales on an annual basis. This transaction will add approximately $48bn to Venerable’s assets under risk management. The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits (GMWB), issued after 2009. An additional block of policies with death benefits and investment-only variable annuities is also included. Corebridge will retain the administration of the block as part of the agreement [1].

David Marcinek, Chairman and CEO of Venerable, commented, “The team at Venerable continues to demonstrate unparalleled expertise in all aspects of complex insurance transactions. The successful closing of this transaction in an extremely accelerated timeframe is another clear example. We are excited to advance our growth strategy with the commencement of flow reinsurance and look forward to offering this capability more broadly as part of our suite of risk transfer solutions” [1].

As announced in late June, Venerable will also reinsure a block of variable annuities from Corebridge’s New York domiciled entity, The US Life Insurance Company in the City of New York (USL), and acquire an investment adviser, SunAmerica Asset Management, LLC (SAAMCo). These transactions are expected to close in the fourth quarter of 2025, subject to customary closing conditions [1].

Upon closing of all three transactions, Venerable’s total assets under risk management are expected to increase from $67bn to $118bn, on a pro forma basis as of March 31, 2025 [1].

Citi and Wells Fargo Securities, LLC are serving as financial advisors, Milliman, Inc. as actuarial advisor, and Sidley Austin LLP as legal counsel to Venerable in connection with this transaction [1].

References:
[1] https://www.businesswire.com/news/home/20250804006853/en/Venerable-Commences-Flow-Reinsurance-with-Corebridge-Financial-and-Closes-Reinsurance-Transaction