Voya Financial Provides Update on Sale of Individual Life Business and Other Closed Blocks
September 2, 2020 by Voya Financial, Inc
NEW YORK–(BUSINESS WIRE)–Voya Financial, Inc. (NYSE: VOYA), today announced that it now expects to complete the divestment of its Individual Life and other legacy non-retirement annuities businesses in the fourth quarter of 2020. Voya previously announced that it has sold these businesses to Resolution Life Group Holdings (Resolution Life) pursuant to a Master Transaction Agreement dated Dec. 19, 2019. Voya and Resolution Life had previously expected to complete the transaction by Sept. 30, 2020 and are shifting the targeted closing in order to allow more time to complete the remaining regulatory reviews of the transaction.
“As we shared on our second-quarter earnings call last month, Voya and Resolution Life have made outstanding progress on the sale of Voya’s Individual Life and legacy non-retirement annuities closed blocks,” said Rodney O. Martin, Jr, chairman and chief executive officer, Voya Financial, Inc. “Thanks to the dedication of teams at both companies, we have completed all the operational and financial requirements needed to close the transaction and ensure a smooth transition for our customers. In addition, to date, we have received approval from most of the state and federal regulators that need to review the transaction. However, we recently learned that the approval process will not be complete prior to Sept. 30, 2020. As a result, we now expect that the transaction will close in the fourth quarter of 2020. We also continue to expect that the sale will provide Voya with approximately $1.5 billion in deployable capital.”
“Over the past several months, many of us at Resolution Life have had the opportunity to work even more closely with the Voya team and get to know the extremely talented individuals that are managing these closed blocks,” said Sir Clive Cowdery, founder and executive chairman, Resolution Life. “We have tremendous confidence in the team and in the Voya platform through which we plan to establish and build our presence in the United States. Based on past acquisitions that we have completed involving legacy life insurance and annuity blocks, we recognize and appreciate the complexity involved. We look forward to continuing to work with Voya and with each regulator to complete the necessary steps to finalize the transaction in the fourth quarter.”
Pursuant to the Master Transaction Agreement, Voya and Resolution Life will close the transaction on the first of the month following the receipt of all regulatory approvals of the transaction.
Through the transaction, Voya’s Security Life of Denver Insurance Company (SLD) and Security Life of Denver International Limited (SLDI) subsidiaries will be acquired by a new holding company, Resolution Life US, created by Resolution Life to hold these blocks of business. In addition, Voya will reinsure the life insurance, pension risk transfer and non-retirement annuities business issued by ReliaStar Life Insurance Company (RLI), Voya Retirement Insurance and Annuity Company (VRIAC), and ReliaStar Life Insurance Company of New York (RNY) to SLD. Voya will retain ownership of VRIAC, RNY and RLI. Voya will also take an interest in Resolution Life, the parent investment fund of Resolution Life US.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13.8 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $7.5 billion in revenue in 2019. The company had $606 billion in total assets under management and administration as of June 30, 2020. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company®. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has been recognized as a 2020 World’s Most Admired Company by Fortune magazine; one of the 2020 World’s Most Ethical Companies® by the Ethisphere Institute; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index by Disability:IN. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.