The DOI issued its official decision on January 28, 2021
The Massachusetts Division of Insurance has issued its approval of the acquisition and control of the Commonwealth Annuity & Life Insurance Company and the First Allmerica Life Insurance Company by KKR Magnolia Holdings, LLC. Both insurers were owned by Global Atlantic which had entered into a merger agreement with KKR.
Based in Brighton, both the Commonwealth Annuity and Life Insurance Company as well as First Allmerica Financial Life Ins. Co. products are marketed under the Global Atlantic Financial Group brand. On July 8, 2020, KKR announced its acquisition of Global Atlantic, with the stated expectation that the deal would close in late 2020 or early 2021.
In July of 2020, KKR Magnolia Holdings also notified the DOI that it was seeking approval for the proposed acquisition of these two life insurance companies, both domiciled in Massachusetts. This notification was initiation through the submission of “Form A Statement Regarding Acquisition of Control” of said insurance companies.
After the DOI’s Working Group deemed Form A complete, the Division issued a Notice of Hearing on December 16, 2020. The public hearing took place on January 6, 2021, with the final decision, issued by the DOI’s hearing officer, Jean F. Farrington, Esq., on January 28, 2021. In particular, the decision noted that the Acquisition satisfies the requirements of M.G.L. c. 175, §206.
KKR Magnolia Holdings, LLC – a billion dollar global investment firm
KKR is a leading global investment firm founded in 1976 by Henry Kravis and George Roberts with locations in more than 20 cities across four continents and 818,000 employees worldwide.
As of September 2020, the firm had approximately $234 billion in assets under management, with approximately $32 billion consisting of assets managed on behalf of insurance companies. Also, more than 50 million retirees and pensioners have “exposure to KKR’s investments” through various pension plans and retirement vehicles.
How to read the official decision
For those individuals interested in reviewing the decision, the DOI’s published decision can be accessed here:
