KKR Closes Acquisition of World-wide Atlantic Economic Team Minimal | Organization & Finance

NEW YORK & BERMUDA–(Small business WIRE)–Feb 1, 2021–

KKR & Co. Inc. (NYSE: KKR) and Worldwide Atlantic Fiscal Team Constrained (“Global Atlantic”) right now announced the closing of their earlier-declared strategic transaction.

World Atlantic is one particular of the biggest fastened level and fastened annuity suppliers in the United States, serving more than two million policyholders via its retirement and life insurance policy goods. It features annuities for individuals as a result of a network of financial institutions, broker-dealers, and insurance policies agencies, as very well as existence insurance for people today. World-wide Atlantic is also a chief in the institutional channel, supplying customized reinsurance alternatives to its lifetime and annuity company purchasers. It offers capabilities across block, movement, and pension risk transfer reinsurance to meet up with its clients’ demands.

World-wide Atlantic has delivered solid functionality considering the fact that the transaction was announced in July 2020. Based on preliminary economic final results of World Atlantic as of December 31, 2020, the estimated value of the World Atlantic belongings to be managed by KKR as of the closing is approximately $90 billion. Driven principally by three reinsurance block transactions, this represents asset development of roughly 25% considering the fact that the announcement of the transaction.

“Considering the fact that we announced this transaction, Global Atlantic’s good results has been extraordinary, and in quite a few approaches we are nicely forward of our initial expectations,” Joseph Bae and Scott Nuttall, Co-Presidents and Co-Chief Operating Officers of KKR, reported. “We welcome World wide Atlantic to the KKR family members and glance forward to supporting its policyholders and consumers by way of our asset administration and origination capabilities, as effectively as our world network.”

World-wide Atlantic will carry on to be led by Chief Govt Officer Allan Levine and its existing senior management team. The business will proceed to function as a separate company. KKR will provide as expenditure supervisor for International Atlantic, permitting Global Atlantic to achieve obtain to KKR’s leading origination engine and asset administration abilities whilst maintaining a prudent chance-modified expenditure system.

“This is an thrilling day for International Atlantic. Remaining a section of KKR strengthens our position as a leading U.S. annuity and life insurance policy business, enhances our means to deliver persuasive solutions for our purchasers and deepens our access to very long-expression strategic funds,” reported Allan Levine, Chairman and Main Govt Officer of Worldwide Atlantic. “Our powerful success to day had been pushed by our men and women and society. We are thrilled to be doing the job with the KKR workforce to capitalize on the significant prospects we see in front of us. In KKR we have a large husband or wife who shares our values, is aligned all around our eyesight, and committed to our accomplishment.”

The transaction valued World-wide Atlantic at close to $4.7 billion. World wide Atlantic will operate as a consolidated subsidiary of KKR, with KKR possessing a controlling desire in International Atlantic of somewhere around 60%.

Next the announcement of the transaction, KKR led an equity co-financial investment procedure resulting in major trader need from new and existing buyers in Global Atlantic, which includes World-wide Atlantic’s management crew. These buyers, like Global Atlantic’s management team, own the remainder of World Atlantic. The co-investment decision approach also generated an added $250 million of most important fairness money that will aid World wide Atlantic’s future advancement objectives and present money versatility.

KKR expects to talk about more specifics similar to the transaction on its Fourth Quarter 2020 Earnings Contact, scheduled for February 9, 2021 at 10:00 a.m. ET.

A convention simply call to go over KKR’s economic success will be held on Tuesday, February 9, 2021 at 10:00 a.m. ET. The convention call could be accessed by dialing (877) 407-0312 (U.S. callers) or +1 (201) 389-0899 (non-U.S. callers) a pass code is not essential. On top of that, the meeting call will be broadcast dwell about the World-wide-web and could be accessed as a result of the Trader Heart part of KKR’s site at https://ir.kkr.com/occasions-presentations/. A slide presentation containing supplemental commentary will be referenced on the simply call and may perhaps also be accessed via this web-site in advance of the call.

Forward-Wanting Statements

This press release consists of specific ahead-hunting statements. Forward-hunting statements relate to anticipations, estimates, beliefs, projections, potential ideas and strategies, predicted situations or traits and comparable expressions concerning matters that are not historical information, such as but not minimal to the statements with regard to: the total that Global Atlantic will add to KKR’s assets underneath administration KKR’s capability to take care of World wide Atlantic’s investments procedure of International Atlantic pursuing the closing of the transaction growth and development prospects and other synergies ensuing from the transaction and the transaction’s outcomes on KKR’s running benefits. The forward-seeking statements are centered on KKR’s beliefs, assumptions and expectations, using into account all info currently available to it. These beliefs, assumptions and expectations can modify as a result of quite a few probable occasions or components, not all of which are regarded to KKR or are in just its regulate. If a improve occurs, KKR’s company, economic ailment, liquidity and success of operations capital structure could fluctuate materially from all those expressed in the forward-looking statements. The following aspects, amid other folks, could bring about actual success to vary from the ahead-on the lookout statements: failure to notice the anticipated gains within the anticipated timeframes from the acquisition of World wide Atlantic unexpected liabilities or integration and other expenditures of the Global Atlantic acquisition and timing similar thereto changes in Worldwide Atlantic’s business enterprise, distraction of KKR’s or International Atlantic’s management or other diversion of methods within just every single enterprise brought about by the transaction retention of crucial Worldwide Atlantic staff members International Atlantic’s ability to sustain business associations next the acquisition the severity and length of the COVID-19 pandemic the pandemic’s effect on the U.S. and world wide economies overseas, federal, condition and local governmental responses to the pandemic the volatility of the money marketplaces failure to know the advantages of or changes in KKR’s or World Atlantic’s small business techniques which includes the skill to notice the anticipated synergies from the acquisition availability, phrases and deployment of cash availability of capable personnel and price of recruiting and retaining such personnel changes in the asset administration or insurance coverage sector, desire costs, credit spreads, forex exchange rates or the general financial system underperformance of World-wide Atlantic’s investments KKR’s and World Atlantic’s compliance with rules applicable to their respective organizations modifications to World wide Atlantic as a consolidated subsidiary of KKR ability of KKR to take care of International Atlantic’s investments KKR’s manage of International Atlantic changes in World Atlantic policyholders’ behaviors any disruption in servicing World Atlantic’s insurance policies guidelines the use of estimates and threat management in Worldwide Atlantic’s enterprise result of World-wide Atlantic’s litigation and regulatory matters and the degree and nature of KKR’s and World wide Atlantic’s opposition. All ahead-on the lookout statements discuss only as of the date hereof. KKR does not undertake any obligation to update any ahead-searching statements to reflect situation or occasions that happen immediately after the date on which these types of statements ended up built besides as essential by regulation. In addition, KKR’s organization approach is centered on the lengthy term and economic effects are matter to considerable volatility.

Supplemental info about elements affecting KKR is offered in KKR & Co. Inc.’s Once-a-year Report on Kind 10-K for the fiscal year ended December 31, 2019, submitted with the SEC on February 18, 2020, quarterly reports on Sort 10-Q for subsequent quarters and other filings with the SEC, which are available at www.sec.gov.

Previous effectiveness is not indicative or a guarantee of potential overall performance. This push launch shall not constitute an offer to promote or the solicitation of an offer to invest in any securities in any jurisdiction.

KKR is a foremost global expenditure firm that manages multiple alternative asset courses, which include personal fairness, credit rating and actual belongings, with strategic partners that deal with hedge money. KKR aims to create eye-catching financial investment returns for its fund traders by subsequent a individual and disciplined financial investment solution, utilizing world-class folks, and driving expansion and price generation with KKR portfolio providers. KKR invests its possess money alongside the money it manages for fund traders and delivers funding methods and financial commitment possibilities via its funds marketplaces company. References to KKR’s investments may well involve the pursuits of its sponsored money. For added details about KKR & Co. Inc. (NYSE: KKR), please go to KKR’s web-site at www.kkr.com and on Twitter @KKR—Co.

World wide Atlantic Economical Team Minimal, by way of its subsidiaries, gives a wide array of retirement, everyday living and reinsurance solutions built to enable our customers deal with economical troubles with confidence. A wide range of selections help Individuals personalize a system to fulfill their safety, accumulation, revenue, wealth transfer and end-of-existence needs.

Worldwide Atlantic was founded at Goldman Sachs in 2004 and separated as an unbiased corporation in 2013. Its good results is driven by a distinctive heritage that brings together deep product and distribution awareness with main financial commitment and danger administration, along with a solid fiscal foundation.

1-877-610-4910 (U.S.) / 212-230-9410

Kristi Huller or Cara Major


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PUB: 02/01/2021 04:15 PM/DISC: 02/01/2021 04:16 PM

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