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Venerable Holdings, Inc. Strikes Landmark Agreement with Corebridge Financial, Inc.

1. Venerable's assets under risk management will rise 77% by 2025. 2. A $51 billion reinsurance deal with AGL and USL supports Venerable's growth. 3. Acquisition of SunAmerica Asset Management will triple Venerable's assets under management. 4. Venerable's strategy includes expanding variable annuity reinsurance offerings. 5. Corebridge praises Venerable's expertise in variable annuity risk transfer.

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Why Bullish?

The significant increase in Venerable’s assets and capabilities likely enhances investor confidence, similar to past mergers that boosted stock valuations in the financial sector.

How important is it?

The article outlines a major strategic move for Venerable that aligns with CRBG's interests in growth and market expansion, suggesting a high likelihood of impacting investor perception positively.

Why Long Term?

As the transactions finalize in 2025, the long-term benefits of increased assets and market presence would play out in subsequent quarters and years, akin to other successful market expansions seen in the insurance industry.

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WEST CHESTER, Pa.--(BUSINESS WIRE)--Venerable Holdings, Inc. (“Venerable”), the leader in providing innovative risk transfer solutions to variable annuity issuers, today announced a landmark transaction with Corebridge Financial, Inc. (Corebridge) that will increase Venerable’s total assets under risk management, on a pro forma basis as of March 31, 2025, by approximately 77% from $67 billion to $118 billion. Venerable has entered into a definitive agreement to reinsure approximately $51 billion of variable annuity business from American General Life Insurance Company (AGL) and The US Life Insurance Company in the City of New York (USL). At the time of the close of the transaction, they will also commence variable annuity new business flow reinsurance from AGL. This will expand Venerable’s existing growth strategy by offering cedents the ability to focus on delivering a full suite of retirement products to their distributors and end clients in a capital efficient manner. Additionally, Venerable will acquire Corebridge’s investment adviser, SunAmerica Asset Management, LLC (SAAMCo), building upon the successful standup of Venerable Investment Advisers, LLC (Venerable Advisers) and the launch of Venerable Variable Insurance Trust and new mutual funds underlying Venerable Insurance and Annuity Company’s variable annuity products, which commenced operations in September 2024. At the close of the SAAMCo acquisition, a team supporting SAAMCo will transition to Venerable, augmenting Venerable’s ability to service separate accounts at scale. The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits (GMWB), issued after 2009 by AGL, a Texas domiciled entity, and USL, a New York domiciled entity. An additional block of policies with death benefits and investment-only variable annuities is also included. Corebridge will retain administration of the blocks as part of the agreement. “Today’s announcement affirms Venerable as the partner of choice in the variable annuity risk transfer space and advances aspirations to expand our growth strategy to include variable annuity flow reinsurance,” said David Marcinek, Chairman and CEO of Venerable. “The efficient and effective standup of Venerable Advisers additionally allowed us to offer Corebridge solutions that others in the industry could not, including expertise in managing separate account assets. The expertise and capabilities across the whole of our company, combined with our risk management philosophy and robust capital position, will position us well for continued disciplined growth.” Venerable’s general account assets are expected to increase from $18 billion to $22 billion with reinsured business growing nearly 94% to over $95 billion in separate account value. In line with Venerable Advisers growth strategy, the acquisition of SAAMCo will more than triple assets under management to approximately $52 billion and expand capabilities within the organization. Kevin Hogan, President and Chief Executive Officer of Corebridge, said, “We are pleased to partner with Venerable on this transaction given their deep expertise and leadership in the variable annuity reinsurance business.” Venerable’s headquarters will remain in West Chester, Pennsylvania, with additional operations in Des Moines, Iowa, and New York, New York. The AGL reinsurance transaction is expected to close in the third quarter of 2025 and the USL reinsurance transaction and SAAMCo acquisition are expected to close in the fourth quarter of 2025, subject to customary closing conditions. Citi and Wells Fargo are serving as financial advisors, Milliman, Inc. as actuarial advisors, and Sidley Austin LLP as legal counsel to Venerable in connection with this transaction. About Venerable and Venerable Investment Advisers Venerable is a privately held company with business operations based in West Chester, Pennsylvania, Des Moines, Iowa and New York, NY. Venerable owns and manages legacy variable annuity business, including variable annuities acquired from other entities. Created by an investor group led by affiliates of Apollo Global Management, Inc., Crestview Partners, Reverence Capital Partners, and Athene Holding Ltd., Venerable is a business with well-established, strategic investors, experienced in successfully building and growing insurance businesses with patient, long-term capital. Venerable Investment Advisers, LLC was established in 2023 and has overall responsibility for the management of mutual funds underlying Venerable Insurance and Annuity Company’s variable annuity products. For more information, please visit www.venerable.com. More News From Venerable Holdings, Inc.

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