b'Mergers & Acquisitions | Life Sector | North America and Bermuda(Equitable) entered into an agreement withIn November 2020, Great-West Lifeco Inc.s (Great-Venerable Holdings, Inc. (Venerable) to reinsure aWest Life) subsidiary, Empower Retirement, block of legacy variable annuity policies backed byacquired the retirement services business of approximately $12 billion of general account assetsMassachusetts Mutual Life Insurance Company and to select AllianceBernstein as the preferred(MassMutual), for a total transaction value of investment manager for the assets. As part of theapproximately $3.35 billion, including a ceding transaction, Equitable will sell its runoff variablecommission of $2.35 billion and $1 billion of required annuity reinsurance entity, Corporate Solutions Lifecapital to support the business. MassMutuals Reinsurance. Equitable reported that the transactionretirement services business comprises 26,000 plans will strengthen its balance sheet, reinforce thewith approximately 2.5 million participants and $167 benefits of Equitables economic risk managementbillion in assets. Great-West commented that the and will allow it to return capital to shareholders. Theacquisition aligns with its long-term plans for growth transaction will generate approximately $1.2 billion ofand scale in the US retirement market, and that the value for Equitable on a statutory basis, including anbusiness includes diversified capabilities across all expected $800 million capital release, a positiveplan types, with significant presence in the small-ceding commission and consideration for Corporatemedium corporate market segment.Solutions Life Re totaling approximately $300 million,In November 2020, Aflac Incorporated (Aflac) and approximately $100 million in tax benefits.acquired Zurich North Americas US Corporate Life Equitable stated that the transaction accelerates itsand Pensions (Group Benefits) business, consisting strategic actions to de-risk its balance sheet and shiftof group life, disability and absence management towards less capital-intensive businesses. products by indemnity reinsurance, strengthening Notable Block Aflacs position as a leading distributor of benefit Reinsurance Transactions solutions to the US workforce. The transaction consisted of two of Aflacs subsidiary insurers In June 2020, Athene Life Re Ltd. (ALRe), a whollyreinsuring on an indemnity basis Zurich North owned subsidiary of Athene Holding Ltd., enteredAmericas US in-force group life and disability into a coinsurance agreement with Jackson Nationalpolicies with annualized earned premium of approx-Life Insurance Company (JNL), pursuant to whichimately $115 million, together with related assets ALRe reinsured a 100% quota share of a block ofand employees. In addition to the transaction, fixed annuity and fixed indexed annuity liabilitiesAflacs acquired group benefits business will be from JNL on a funds withheld coinsurance basis inincluded as a partner within Zurichs Global exchange for a ceding commission to JNL of approx- Employee Benefits Solutions Partner Network, imately $1.25 billion. The aggregate ceded statutoryallowing Aflac to offer its employee benefit prod-reserves as of June 1, 2020, were approximatelyucts to Zurichs global clients with a US presence.$26.7 billion. Approximately 63% of the total capitalAlthough not a life or annuity transaction, a final deployed for the transaction was funded by third- notable transaction announced during 2020 was party investors in Athene Co-Invest ReinsuranceMetLifes agreement to sell its P&C business to Affiliate 1A Ltd. (ACRA), a subsidiary of AtheneFarmers Group, Inc. for $3.94 billion. [See Property-Holding Ltd., with the remaining capital funded byCasualty Sector - North America and Bermuda].Athene on a stand-alone basis. Athene also agreed to purchase a $500 million equity stake in a share-holder of JNL, representing an 11.1% equity interest and 9.9% of the aggregate voting power. MAYER BROWN 15'