Resolution Life and asset management giant Blackstone have formed a strategic alliance to combine the life insurer’s global liability management platforms and Blackstone’s insurance asset management capabilities.
Blackstone will make a $500m investment in Resolution Life as part of the plan to raise $3bn in new equity capital, which is expected to take the insurer’s overall equity capital base to over $8bn
With the additional capital, Resolution Life hopes to scale up its growth in the acquisition and management of life insurance portfolios.
As part of the collaboration, Resolution Life will serve as Blackstone’s partner for new closed-book transactions, including reinsurance, in the life and annuity sector across the globe.
Resolution life group founder and executive chairman Sir Clive Cowdery said: “This partnership accelerates Resolution Life’s growth through access to Blackstone’s capital and investment capabilities.
“It is a continuation of Resolution’s 20-year mission to be the partner of choice for the life insurance industry and a custodian for its in-force policyholders globally.”
The tie-up will also see Blackstone manage Resolution Life’s investments in key areas, such as directly originated assets across private credit, real estate and asset-based-finance markets.
In the first year, Blackstone will manage up to $25bn in assets, which is expected to grow to more than $60bn over the next six years.
Blackstone Insurance Solutions global head Gilles Dellaert said: “We believe that Blackstone’s world-class private credit and asset origination platform and Resolution Life’s leading position in the closed book consolidation market will be a powerful combination.
“We look forward to working closely with the Resolution Life team in the years ahead to help drive their growth and deliver greater financial security for policyholders.”