Global investment firm Sixth Street has agreed to acquire Talcott Resolution Life Insurance Company from a consortium of investors led by Cornell Capital, Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook, J. Safra Group, and The Hartford.
Talcott Resolution manages over $90 billion in liabilities and surplus for approximately 900,000 customers across the span of its businesses, including nearly 600,000 annuity contract holders.
Following the acquisition, the company will continue to be led by Chief Executive Officer and President Pete Sannizzaro and will remain headquartered in Windsor, Connecticut.
“We want to thank the consortium for their tremendous support over the past few years as we established Talcott Resolution as an independent growth platform for risk transfer solutions,” said Sannizzaro.
“We are looking forward to our partnership with Sixth Street and the next chapter in Talcott’s evolution. Sixth Street’s commitment to expand its presence in the insurance industry along with its stable, long-term capital base will be significant catalysts for our company’s growth.”
Richard Carbone, Chairman and Independent Director of Talcott Resolution, also commented: “Over the last three years, it has been a pleasure to work together with Pete and the entire Talcott Resolution team, as well as The Hartford and the consortium’s exceptional investment partners, to strategically grow and reposition Talcott Resolution as a standalone company built for long-term, sustainable success.”
“We are proud of all that the company has accomplished since the acquisition, and this sale represents a highly successful outcome for the company and the entire investor group.”
“The Talcott Resolution team has a proven ability to initiate, execute, and deliver results and we look forward to continuing what the consortium started through their strategic investment in the company’s growth,” added Alan Waxman, Co-Founder and CEO of Sixth Street.
“This is a significant step in our commitment to the insurance sector, and we are excited to be partnering with Pete and his experienced team.”
And finally, A. Michael Muscolino, Co-Founder and Partner at Sixth Street, stated: “We are pleased with the opportunity to be investing in and helping build a leading creative solutions provider to the insurance industry.”
“With great support and guidance from their institutional investors, Pete and team have created a business with the reputation, capabilities, and expertise to take advantage of opportunities afforded by the current market environment.”
Sixth Street manages over $50 billion in assets and pursues investments in the insurance sector through its Sixth Street TAO platform, which consists of $25 billion in flexible, long-dated capital.
The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.
J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. acted as financial advisors and Willkie Farr & Gallagher LLP acted as legal advisor to Sixth Street. Sidley Austin LLP acted as legal advisor to the consortium.
