Venerable Holdings, Inc. announced it has begun new business variable annuity flow reinsurance with American General Life Insurance Company, a Corebridge Financial, Inc. subsidiary, and has completed a separate reinsurance transaction with the company effective Aug. 1, 2025.
The flow reinsurance arrangement includes a 100% quota share from AGL, which is domiciled in Texas, and is projected to generate about US$1.25 billion in annual sales. The reinsurance deal will add roughly US$48 billion to Venerable’s assets under risk management.
The arrangement with Corebridge is part of a broader US$2.8 billion reinsurance deal through which Corebridge is exiting its US$51 billion variable annuity book from its individual retirement business.
The portfolio includes both general account assets, valued at about US$5 billion and reinsured under a 100% coinsurance structure, and approximately US$46 billion in separate account assets transferred via modified coinsurance. Newly issued AGL contracts will also be added under an ongoing flow agreement after closing.
Meanwhile, Corebridge reported a US$664 million net loss in the first quarter of 2025, driven in part by losses on embedded derivatives from Fortitude Re and unfavorable fair value changes, while adjusted pre‑tax operating income totaled US$810 million. The company also approved a US$2 billion increase to its share repurchase authorization, intending to use proceeds from the transaction to accelerate capital returns.
David Marcinek (pictured above right), chairman and CEO of Venerable, said the transaction’s completion in an accelerated timeframe illustrates the company’s capabilities in complex insurance arrangements.
“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,” Marcinek said.
The reinsured business from AGL primarily consists of contracts with guaranteed minimum withdrawal benefits issued after 2009. The agreement also covers an additional block of policies with death benefits and investment-only variable annuities. Corebridge will continue administering the block.
In June, Venerable said it would also reinsure a block of variable annuities from The US Life Insurance Company in the City of New York, another Corebridge entity, and acquire SunAmerica Asset Management, LLC. Those transactions are expected to close in the fourth quarter of 2025, subject to customary conditions.
Following completion of all three transactions, Venerable’s total assets under risk management are expected to rise from US$67 billion to US$118 billion on a pro forma basis as of March 31, 2025.
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