Mortality for the Life Insurance Industry in 2020
The Covid-19 pandemic significantly impacted the U.S. life insurance industry in 2020. The emergence of the
virus in late winter 2020 greatly limited economic and social activities in almost every quadrant of the country,
and virtually every government (state, federal, local) in the U.S. and other western countries took significant
actions to attempt to limit the spread of the virus.
Genworth Financial Inc. Terminates Merger Agreement with China Oceanwide
On April 6, 2021 Genworth Financial Inc. (GNW) exercised its right to terminate its merger agreement with China Oceanwide Holdings Group Co. Ltd. (CO). This ends a nearly 4½ year process, characterized by 17 extensions, the receipt of numerous regulatory approvals in the U.S., and the sale of GNW’s ownership interest in its Canadian mortgage insurance business.
Ohio National Mutual Holdings to Convert to Stock Company: Shares to be issued to Constellation Insurance Holdings
On March 23, 2021 Ohio National Mutual Holdings, Inc. (ONMH)’s Board of Directors unanimously approved a strategic transaction with Constellation Insurance Holdings Inc. (CIH). The transaction includes the sponsored demutualization of ONMH to a stockholder owned company, and the issuance of all its newly issued stock to CIH.
Prudential plc to “Demerge” Jackson National; Jackson National RBC Ratio Changes
U.K.-based Prudential Plc (PRUplc) made several announcements last week (January 28, 2021), which included the following:
China Oceanwide Acquisition of Genworth Update
Genworth Financial Inc. (GNW) and China Oceanwide Holdings Group Co. Ltd. (CO) announced on January 4, 2021 that they would not extend the “end date” under their merger agreement. This is a change from the seventeen previous extensions the two companies have agreed upon since their original agreement to merge in 2016.
TransAmerica To Exit Select Lines of Business
On December 10, 2020 AEGON N.V. (AEG), parent company of the TransAmerica U.S. life insurers (TRANS), announced significant changes to its U.S. individual businesses in an effort to strengthen the business, provide capital relief, and create value for AEG’s customers and shareholders. These changes include the following:
Great American Life to Cede a Portion of its Annuity Business
On October 26, 2020, Great American Life Insurance Company (Great American Life), the principal life insurer of the publicly traded American Financial Group, Inc. (AFG), announced it had reached an agreement to cede $5.7 billion of fixed and fixed indexed annuities to Commonwealth Annuity & Life Insurance Company (CA&L), a life insurer owned by the privately held Global Atlantic Financial Group Ltd. (Global Atlantic). The transaction is retroactive to October 1, 2020.
Equitable to Divest Portion of Variable Annuities
On October 28, 2020, Equitable Holdings, Inc. (EQH) announced that its flagship company, Equitable Financial Life Insurance Company (EFLIC), plans to divest about 13% of its variable annuity policy contracts business to Venerable Holdings, Inc. (VH). EFLIC held approximately $12 billion of general account policy reserves at 12/31/19 that related to the living or death benefit guarantees associated with this business, which was over half of EFLIC’s total general account reserves for variable annuities with guarantees of $23 billion as of 12/31/2019.
American Financial Group to cede portion of Fixed Annuity Business
On October 26, 2020, American Financial Group, Inc. (AFG) announced it had reached an agreement to cede $5.7 billion of fixed and fixed indexed annuities to Global Atlantic Financial Group Ltd. (GAFG). The deal was effective October 1, 2020.
AIG Announces Plan to Spin-off Life and Retirement Units
On October 26, 2020, American International Group (AIG) announced a plan to separate its Life and Retirement business from the remainder of the AIG organization, while AIG also announced that Peter Zaffino, AIG’s current President, will become AIG’s Chief Executive officer in March 2021 (succeeding Brian Duperreault). AIG is a major provider of individual life insurance and annuities in the U.S., through subsidiaries American General Life Insurance Company (AGL), United States Life Insurance Company in the City of New York (USLNY), and Variable Annuity Life Insurance Company (VALIC).