Resolution Life Secures $1.6 Billion in Funding to Expand Its Life Insurance Business

By Adriaan Brits Friday, May 14, 2021

Resolution Life, a Cowdery Resolution Group’s life insurance investment business, has secured $1.6 billion in fresh capital through the buyouts and reinsurance of life insurance portfolios. Credit Suisse Asset Management acted as exclusive placement agent, the company said in a statement.

Life insurance brochure.

Further Expanding the Insurance Business

Resolution Life has built multiple capital structures over the years in order to run in-force portfolios of life insurance and reinsurance risk, benefitting vehicle investor backers, including financial institutions, insurance companies, pension plans, sovereign wealth funds, and family offices.

The investment arm uses acquisitions or reinsurance to yield business returns and profits back to them through dividends. Through this business deal, the company will offer reinsurance for the legacy book of life business in a bid to buy premium assets and run them through to the policy’s conclusion.

“Resolution Life provides global insurance companies with a specialist partner to help them release capital while honouring the long-term commitments made to policyholders. Our scale, extensive transactional and operating expertise and our strong capital backing from high-quality investors provides insurers, regulators and policyholders with the confidence and certainty they require,” said Resolution Founder and Executive Chairman of the company, Sir Clive Cowdery.

Resolution Life utilizes its Bermudian reinsurance platform Resolution Re, as well as its other platforms in the United States (US) and Australasia in order to strike business deals with legacy risk holders. The company currently manages roughly $60 billion of assets around the globe on behalf of about 2.5 million policyholders.

Resolution Life offices and operations in the United Kingdom (UK), the US, Bermuda, Australia, and New Zealand have poured about $16 billion of equity since 2003, the company said. The company also has similar investment tools founded by Clive Cowdery. Resolution Life currently has around $5 billion in secured commitments since it started operating in September 2018.

The company’s success in securing fresh business funding underlines the rising appeal of insurance-related investment returns as the majority of big institutional insurance-linked securities (ILS) fund investors often support such open and closed life book consolidation vehicles.

It is also another instance of institutional capital markets business funding being used to underwrite deals and buy risky portfolios, allowing backers to yield insurance-related returns via a fund-like structure. Profiting from large life insurance risk portfolios represents an appealing strategy among institutional investors and reinsurance companies.

Resolution Life previously raised $3 billion in business funding in late 2019 in capital commitments to deploy its legacy life insurance-linked investment strategy. Then, the company said it would use the funds to support its legacy life insurance business and deploy it either for acquisitions of companies or reinsurance transactions.

Board members of Resolution Life include some of its major investors, such as JP Morgan Chase, KKR, Nippon Life Insurance Company, Temasek, The Universities Superannuation Scheme, and a Middle Eastern sovereign wealth fund.

Summary

Resolution Life, Cowdery Resolution Group’s life insurance company, raised $1.6 billion via acquisitions and reinsurance of life insurance portfolios. The latest funding round underscores the popularity of insurance-related investment returns as a number of institutional ILS investors are happy to support open and closed life book consolidation vehicles.

About the Author


Headshot for author Adriaan Brits
As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

Related Articles