January 20, 2021
Sixth Street to Acquire Talcott Resolution
Talcott Resolution Life Insurance Company (“Talcott Resolution” or “the company”) today announced that Sixth Street, a leading global investment firm, has entered into a definitive agreement to acquire the company from a consortium of investors (the “consortium”), led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook, J. Safra Group, and The Hartford.
Talcott Resolution is a leading strategic partner for the insurance industry, offering a broad range of execution-focused capabilities, state-of-the-art technology and analytics, and in-force and new business solutions that provide capital flexibility and risk management efficiencies. It manages over $90 billion in liabilities and surplus for approximately 900,000 customers across the span of the Talcott businesses, including nearly 600,000 annuity contract holders.
The investment by Sixth Street affirms the successful implementation of Talcott Resolution’s strategy since becoming independent from The Hartford in 2018, as well as its growth potential as a consolidation platform for the U.S. life and annuity market. The company will continue to be led by Chief Executive Officer and President Pete Sannizzaro and will remain headquartered in Windsor, Connecticut.
“We want to thank the consortium for their tremendous support over the past few years as we established Talcott Resolution as an independent growth platform for risk transfer solutions,” said Mr. Sannizzaro. “We are looking forward to our partnership with Sixth Street and the next chapter in Talcott’s evolution. Sixth Street’s commitment to expand its presence in the insurance industry along with its stable, long-term capital base will be significant catalysts for our company’s growth.”
“Over the last three years, it has been a pleasure to work together with Pete and the entire Talcott Resolution team, as well as The Hartford and the consortium’s exceptional investment partners, to strategically grow and reposition Talcott Resolution as a standalone company built for long-term, sustainable success,” said Richard Carbone, Chairman and Independent Director of Talcott Resolution. “We are proud of all that the company has accomplished since the acquisition, and this sale represents a highly successful outcome for the company and the entire investor group.”
“The Talcott Resolution team has a proven ability to initiate, execute, and deliver results and we look forward to continuing what the consortium started through their strategic investment in the company’s growth,” said Alan Waxman, Co-Founder and CEO of Sixth Street. “This is a significant step in our commitment to the insurance sector, and we are excited to be partnering with Pete and his experienced team.”
“We are pleased with the opportunity to be investing in and helping build a leading creative solutions provider to the insurance industry,” said A. Michael Muscolino, Co-Founder and Partner at Sixth Street. “With great support and guidance from their institutional investors, Pete and team have created a business with the reputation, capabilities, and expertise to take advantage of opportunities afforded by the current market environment.”
Sixth Street manages over $50 billion in assets and pursues investments in the insurance sector through its Sixth Street TAO platform, which consists of $25 billion in flexible, long-dated capital. Sixth Street’s team of dedicated insurance-focused investment professionals and experts focuses on strategic partnerships, corporate acquisitions, reinsurance, and other balance sheet bolstering transactions.
The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.
J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. acted as financial advisors and Willkie Farr & Gallagher LLP acted as legal advisor to Sixth Street. Sidley Austin LLP acted as legal advisor to the consortium.
About Talcott Resolution
Talcott Resolution Life Insurance Company oversees over $90 billion in liabilities and surplus for approximately 900,000 customers. The company offers creative in-force and new business solutions that provide insurers with capital flexibility and risk management efficiencies. Named a “Top Workplace” by the Hartford Courant for 2019 and 2020, Talcott Resolution is headquartered in Windsor, Conn. For more information visit www.talcottresolution.com.